A profit and loss statement is one of the most important tools you have in your business to determine profitability. Do you know how to create a profit and loss statement?
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Accounting Articles
Accounting Tips, Training, and News
Net Income vs. Gross Income: Know Your Business Profits
June 9, 2025Understanding how your business earns—and keeps—money is fundamental to financial success. You can look at gross income and net income to gauge business profitability. But what is the difference between net income vs. gross income? And why does it matter for your business?
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The Average Cost of Living by State, and Why Ignoring it Could Sink Your Business
May 13, 2025You hear about it all the time in the news—Cost of living rising! Maybe you think about it on a daily basis—Do I earn enough to cover my standard of living in my state?
Read More The Average Cost of Living by State, and Why Ignoring it Could Sink Your Business
How to Make a Journal Entry for Sales in Your Books
May 12, 2025Ten out of 10 businesses sell products or services. And when you make a sale, you need to record the transaction in your accounting books. How comfortable are you with making a journal entry for sales?
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Which Financial Statement Is Prepared First?
May 12, 2025Your business’s financial statements give you a snapshot of the financial health of your company. Without them, you wouldn’t be able to monitor your revenue, project your future finances, or keep your business on track for success. So which financial statement is prepared first?
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Small Business Tax Preparation Checklist
May 9, 2025There are two types of people come tax time. You’ve got the ones who are excited and file their taxes on the first day they can. And, you’ve got the ones who moan and groan and file at the last minute. Which one are you?
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What Does It Mean When Something Is Paid in Arrears?
May 8, 2025You might extend credit to customers so they don’t pay right when they receive a good or service. When you invoice a customer, you include payment policy terms that detail when the money is due. You might bill in arrears, or the customer may pay in arrears. What does it mean when something is paid […]
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What Is an Owner’s Draw in Accounting?
May 8, 2025As a business owner, you likely pay wages to employees. But when it comes to paying yourself, what do you do? Depending on your type of business structure, you might be able to pay yourself an owner’s draw.
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What to Do If You Can’t Pay Your Taxes in Business
April 29, 2025Paying taxes is an important part of being a business owner. But, when you own a business, your cash flow goes through ups and downs. What if you can’t pay your taxes? You’re probably here because you’re unsure of what to do if you can’t pay your taxes. Luckily, the IRS offers tax payment options […]
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How to Contact the IRS: Phone Numbers and More
April 29, 2025For many taxpayers, there are few things in life more stressful than dealing with the IRS. And when you have questions about your business tax return, an IRS notice you received, or an upcoming audit, you need to know how to contact the IRS.
Read More How to Contact the IRS: Phone Numbers and More