The main reason that some people take opportunities when they arise, and others do not, is that some people are ready.
They have their business plan ready and all they need to do is take advantage of the opportunities.
Where can you find the right business plan?
If your business is based in the United States - click here
If your business is based in the U.K. - click here
Ideas To Action.
Part 52 - Accounts.
The purpose of accounting is to provide information necessary for sound decision - making. Financial reports are prepared to provide investors, creditors, tax authorities and other external parties with accurate information about the business.
The two primary objectives of businesses are to earn a profit and to remain solvent. To prove success in those two areas, they need to prepare financial statements. To allow interested parties to evaluate these areas, businesses provide four types of financial statements:
- a balance sheet,
- an income statement,
- a statement of the owner's equity and
- a statement of cash flow.
To be useful, these statements must be understandable, timely, relevant and free from bias.
Part of the accounting process includes bookkeeping, which is simply the record of a business' transactions. In financial statements, accountants use the records from bookkeeping to create an analysis about the financial situation of the business. The accounting cycle is the process by which transactions are recorded and analyzed repeatedly. In the preparation of financial statements, the fundamental accounting model is that a business' assets are equal to the sum of its liabilities and equity.
The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of business taxes.
- Income Tax
- Estimated Taxes
- Self - Employment Tax
- Employment Taxes
- Excise Tax
Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system.
Accounting software is typically composed of various modules, different sections dealing with particular areas of accounting. Among the most common are:
- Accounts receivable - where the business enters money received
- Accounts payable - where the business enters its bills and pays money it owes
- General ledger - the company's "books"
- Billing - where the business produces invoices to clients / customers
- Stock / inventory - where the business keeps control of its inventory
- Purchase order - where the business orders inventory
- Sales order - where the business records customer orders for the supply of inventory
- Bookkeeping - where the business records collection and payment
One of the best ways for a small business to cut costs and create savings is to deploy and utilize accounting software. Well designed accounting software can help any business reduce costs by increasing the efficiency with which incoming cash flows and payments, outgoing bill payments and liabilities, and payroll are handled.
Many small businesses either rely on accounting software for their own use, or keep accounting software on hand for a part time bookkeeper that handles weekly or bi-weekly input of financial figures, and handling of payroll and other outgoing expenses.
For many small businesses, this means that the business can avoid the fiscal hurdles associated with keeping a full time bookkeeper around.
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A Great Business did not just happen - It was planned that way.