One Blog Post at a Time
Acquiring. Consuming. Owning.
In today's society, these are our favorite words. Discussions around many boardroom tables and wine bars center around prepping a budget to include the next asset acquisition.
How do we account for such valuable stuff?
Actually, it’s pretty easy. For most of us, we can get our head around tangible items we can see and touch.
Let's get started!
Assets start the party and come first on the balance sheet. Examples of assets include, cash, accounts receivable (although we haven't received the funds, they are DUE to us,) investments, fixed assets, intangible assets and other assets.
Assets are listed in order of liquidity. Cash is listed at the top because, duh, it is the king of liquidity. Yet land, for example, although extremely valuable, comes much later.
How about I offer you a down and dirty – straight to the point – boiled down version of the seven things you need to know about financials to be the savvy business owner you aspire to be?
Because, let's be honest, most of us aren’t going to raise our hand and volunteer to sit through Accounting 101!
This marks the beginning of a seven-week blog series covering the six major categories found within financial statements. Each week we will go in-depth to clearly identify what you need to know quickly, easily and efficiently to produce the best reports possible.
By understanding the in’s and out’s of each category, you can totally up your accounting game! And doesn't everyone want to do that??
After the series you will:
Week 1: Short Introduction to the Dynamics of the Balance Sheet (BS) & Profit & Loss (P&L)
Balance Sheet Categories
Week 2: Assets
Week 3: Liabilities
Week 4: Owner’s Equity
Profit & Loss Categories
Week 5: Sales
Week 6: Cost of Goods Sold
Week 7: Expenses
Let’s get started on our Week 1 Introduction!
Hi! It's Bridgett here! Are you ready to take your business to a new level? Let's do it!
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