When a business owner makes an income statement for internal use only, they’ll sometimes refer to it as a “profit and loss statement” (or P&L). Your net profit margin tells you what portion of each revenue dollar you can take home as net income. This takes into account all your...
What is the difference between notes payable and notes receivable?
Let’s say that ourexample company turned over the $2,200 accounts receivable to acollection agency on March 5, 2019 and received only $500 for itsvalue. When customers are unable to pay off the credit in the normal timeframe, a note receivable allows them more time to make payments, and interest is...
In-House Accounting vs Outsourced Accounting Which Makes Sense For Your Business?
Whether you pay a monthly subscription or a flat fee for services, the investment can be far less than what you would pay an in-house CPA. With outsourced accounting for retail business, construction bookkeeping services, or other industries, the amount of work you have to do is minimal. So there’s...
Contra Account Definition, Types, and Example
The equity section of the balance sheet is where the shareholder's claims to assets are reported. The main contra equity account is treasury stock, which is the balance of all stock repurchased by the company. When a company repurchases shares, it increases the fractional ownership of all remaining shareholders. Contra...
What is the Difference Between Bank Balance and Book Balance?
Your total account balance does not reflect any checks or other initiated balance transactions that have not been fully processed. Your small business bank account may be ever-changing as funds come and go. Checking your balance and managing your transactions will give you key insight on your business growth. Learn...
