Tip Of The Day #41 - Bookkeeping Basics
Barbara Steckly
Let’s go back to bookkeeping basics.
Your business is an ongoing story all about sales and services, profits and losses, assets and expenses. How do we properly put all that on paper so it can be easily read?
First there’s the balance sheet. Like a fiscal snap shot of your business, the balance sheet captures an image of its financial health on one given date.
The income statement, on the other hand, could be compared then to a fiscal photo album containing the financial story of your business over a longer period in time, could be a month, a quarter, or a year.
The profit or loss you end up with for the period of the income statement shows up in the owner’s equity section of the balance sheet.
If the expenses and assets are not correctly posted in your balance sheet, ultimately, it adversely affects your reported bottom line, which is why working with a savvy bookkeeper is absolutely vital for your business story’s happy ending.
You can bet your sweet asset!
Preferred Client Services, professional bookkeepers in Edmonton, AB working as business partners to make a positive difference to your bottom line.