Accounting is an essential part of running a successful small business. It involves tracking financial information such as income and expenses, using accounting software or traditional bookkeeping methods to keep records of transactions, and preparing reports like the income statement, balance sheet, and cashflow statement.
Why is accounting important for businesses? For one thing, accounting helps businesses understand their financial position at any given point in time. This can help owners make better decisions about managing their business operations and finances. Additionally, accounting can provide valuable insights into how well a business is performing compared to its competitors and industry norms.
Another key role of accounting is recording debits and credits for all financial transactions that take place within the business. Accounting systems use these debits and credits to create a balance sheet, which provides an overview of a business's assets, liabilities, and equity. Additionally, accounting software can also be used to create a cashflow statement, which helps businesses understand the flow of their incoming and outgoing funds.
Whether you are running a small business or managing accounting for a larger organization, knowledge of accounting basics is essential. Whether you are analyzing financial statements or entering transactions into the general ledger, understanding accounting concepts will help you make better decisions and contribute more effectively to your organization's success. So if you're looking to boost your accounting skills and knowledge, start with learning about balance sheets and cashflow statements today!
In accounting, one of the most important tools is the income statement, which helps businesses understand their incoming and outgoing funds. This statement provides an overview of a company's revenues and expenses during a certain period of time, such as a quarter or year. It can also give insight into how well a business is performing over time and help with strategic planning for future growth.
In addition to analyzing financial statements, accounting professionals are responsible for recording transactions in the general ledger and maintaining accurate records of all financial activity within an organization. Whether you work as a bookkeeper or accounting manager, it is essential to have strong knowledge of debits and credits and other basic accounting concepts. With these skills under your belt, you'll be able to contribute more effectively to financial reporting and management decisions.
Financial accounting is an integral part of any business, large or small. Whether you're analyzing a company's financial statements on a quarterly or yearly basis, accounting provides important insights into the health and performance of a business. Additionally, accounting helps businesses plan for the future by providing insight into how current trends are impacting revenue, expenses, and cash flow.
Whether you work in accounting as a bookkeeper or accounting manager, it's essential that you have strong knowledge of debits and credits and other basic accounting concepts. With these skills under your belt, you'll be able to provide more valuable insights to key decision-makers within your organization and help ensure that your business continues to thrive in today's dynamic marketplace.
At its core, accounting is simply the process of tracking and analyzing financial data for a business. This can include things like revenue, expenses, cash flow, and assets, all of which are essential to understanding how your business is performing and where you can make improvements.
Whether you're running a small business or overseeing accounting at a larger organization, accounting plays a critical role in helping you make smart decisions about the direction of your company. So if you want to be successful in this field, it's important to stay up-to-date on accounting best practices and trends so that you can provide valuable insights and guidance to others within your organization. Good luck!
All functions of a business can use AI
accounting, marketing, operations, HR, legal, admin, etc...
AI using team > team alone
Apps like ChatGPT are allowing for people to learn and work faster and faster.
You can start using CHATGPT today.
WHO is the gross profit & who cares?
WHAT can you do with GP?
WHERE do you use GP numbers?
WHEN is it calcuated and used?
WHY people care about gross profit?
Not everyone, depends on factors such as size, goals, risk tolerance, and tax situation.
Tax advantage(s) and legal advantage(s).
Canada Revenue Agency: https://www.canada.ca/en/services/business/start.html
Silicone Valley Bank & Signature
Could not pay all withdrawals
Mostly US operating bank
Friday March 10th
Too many people trying to take out $$ at once.
The T1 is for all Canadian residents.
A Canadian tax form for individuals to fill out. Looks like this, trust me, it's not that complicated, and most fields probably don't even apply to your situation.
Tax filing & payment due to CRA, file online @ wealthsimple.com
Every year before end of April.
Because CRA collects money needed fund rest of the gov't.
The T1 General Income Tax and Benefit Return is a tax return form that individuals use to determine their annual tax liability and claim federal or provincial benefits, such as the GST/HST Credit.
The form summarizes the taxpayer's income, deductions, and tax payable, as computed on supporting forms and schedules, and calculates any refund or balance due.
The T1 form consists of five parts:
2) Total Income
3) Net Income
4) Taxable Income
5) Refund/ Balance owing
Online, In-person, mail, Tax professional
To ensure timely submission, the completed T1 form and any outstanding balances are due by April 30th of the following year (by June 15th for self-employed individuals or common-law partners). If these deadlines fall on a weekend or public holiday, the deadline is extended to the next business day.
Business owners need to build a company track & stay on it.
Key Performance Indicators are common statistics & ratios a company would keep track of.
Pulled from business & financial reports
Always be keeping track of KPIs and perform variance calculations.
Ensure mone is being made.
WHO needs to know?
ROI important metric for business decision makers.
WHAT is ROI?
Rerturn on marketing spend is how much profit is made from a given number of marketing cost.
WHERE can you collect this data?
Marketing ROI = SALES CHANGE/ MARKETING SPEND
WHEN should you look at Marketing ROI?
WHY pay attention to marketing ROI?
Determine what is most profitable for business.