Break-even analysis is a simple calculation, but it is a powerful tool for any business owner, it helps them to understand the relationship between the revenue and costs of the business. In this blog, we will go over the step-by-step process of how to carry out a break-even analysis and provide an example of how it can be applied in the real world.

Bookkeeping is a crucial task for small business owners, but it's easy to make mistakes. Common mistakes include mixing personal and business expenses, neglecting to keep track of receipts and invoices, skipping the reconciliation process, not tracking inventory, and not reviewing financial statements. By being aware of these errors and taking steps to avoid them, you can ensure your financial records are accurate and up-to-date, which will help your business to run smoothly.

Bookkeeping is essential for the success of your business. It provides a clear financial picture to make informed decisions and ensures compliance with legal requirements. Prioritize it whether by doing it yourself or hiring a bookkeeper, to avoid problems that can negatively impact your business growth and success.

Being your own boss, working as much you want, and when you want. There are many things to love about being self-employed. Taxes, however aren’t one of them. Read on to discover how you should prepare for any taxes owing at the end of the year.

When should costs be expensed and when should costs be capitalized? Capitalizing or expensing purchases is a common question for small business owners. The way purchases are accounted for can sometimes make the difference between an income statement that shows a profit and one that shows a loss. Read on to find out the difference between the two.

Depreciation, a word usually associated with negative things; the wear and tear of your vehicle and it’s often misunderstood as a term for something simply losing value, or as a calculation performed for tax purposes. However, come tax time, you will thank depreciation for the tax savings it offers you for your capital assets.

When you think about the money your business has to work with, ot’s good to dig a little deeper. Cash flow is the amount of money coming into your business and the amount of money going out. You need to think about the money you have in your account, as well as the money that is going to come in and out of your account. This is where the idea of cash flow comes in.

Although the different kinds of accounting methods is not exactly an exhilarating topic for most, there are some things you should be aware off in order to keep proper track of your business’ finances.