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Download e-book for iPad: Accounting for the Numberphobic. A Survival Guide for Small by Dawn Fotopulos

By Dawn Fotopulos

ISBN-10: 0814434339

ISBN-13: 9780814434338

Why accomplish that many company vendors dread taking a look at the numbers? They make excuses...They shouldn't have time...That's what the accountant is for....But the easy fact is that not anyone else will ever be as invested of their corporation as they are—and they should take keep watch over.

As a small-business proprietor, monetary statements are your most vital tools—and in case you do not know the way to learn them and comprehend their implications, you can't almost certainly steer what you are promoting effectively. Accounting for the Numberphobic demystifies your company's monetary dashboard: the web source of revenue assertion, funds stream assertion, and stability Sheet. The e-book explains in simple English how every one size displays the final future health of your business—and affects your judgements. you'll find:

How your internet source of revenue assertion is the most important to growing to be your gains • how one can establish the break-even element that suggests what you are promoting is self-sustaining •...

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Extra info for Accounting for the Numberphobic. A Survival Guide for Small Business Owners

Example text

It’s about the future of your business. It’s about equipping you to get adequately compensated for your talent so you can support your family and household. It’s about leveraging your skills, gifts, and experience to have something tangible to show for all your hard work and sleepless nights. It’s about giving you a roadmap so your small business does not become a statistic like 50 percent of your peers. It’s about giving people who run small businesses—whether from an office or a storefront, from the basement, garage, or dining room table—the freedom to dream again and for that dream to become a reality no matter what the rollercoaster economy is doing.

When you run out of cash, it’s game over. Your Cash Flow Statement, as the name indicates, measures the flow of cash in and out of your business. This gauge works like your personal checkbook. You start (one can only hope) with a positive cash balance at the beginning of the month. Cash comes in from customer payments, investments, or loans. Cash goes out to pay bills and salaries. Your ending cash is brought forward to begin the cycle again in the following month. There are three primary sources of cash for small businesses, and they are not all created equal.

If it’s negative, you’re losing money. The bottom line is what’s left after every direct and indirect expense is paid from net revenue. That number is why you’re in business. It’s net profit. Why should you care whether your business is making a profit or not? Because when you run a small business, you’re taking on a lot of risk. You’re making enormous sacrifices in time and effort. I don’t know about you, but if I’m working 12-hour days to keep the place running and my Net Income Statement isn’t showing a profit, it puts me in a really bad mood.

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Accounting for the Numberphobic. A Survival Guide for Small Business Owners by Dawn Fotopulos

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