Key Terms
Key Terms to Understand Financial Reports
We help small businesses of all shapes and sizes with their accounting.
Assets
An asset is anything of value that can be converted into cash or income. Examples of business assets are cash, accounts receivable, inventory or equipment. Assets are found on your company’s balance sheet and listed first.
Liabilities
Liabilities are amounts owed. Liabilities can either be short-term (due within 12 months) or long-term (due beyond 12 months). Interest is usually assessed on all liabilities which should also be recorded in the books. This includes accounts payable, credit card debt, loans, etc. Liabilities are found under the assets on the balance sheet
Equity
Equity is ownership in the business. Many different factors influence equity such as contributions, distributions, and retained earnings. Equity is the last item listed on the balance sheet.
Revenue
Revenue is income earned through the sale of products or services. Revenue is listed first on the profit and loss statement. Every business must have revenue to succeed.
Expenses
Expenses are costs incurred. Expenses are necessary to run a business. However, it should be monitored closely. Business expenses are found under revenue on the profit and loss statement.
Financial Statements
Financial statements are records of the financial activities of a business. This information is relevant and impactful to business owners. Financials are structured as an easy-to-understand way to help you make great business decisions.
QuickBooks setup
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QuickBooks Help
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Fixed Asset Managment
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Historical Data catch up
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Online LLC Formations
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Vendor Management
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