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Financial Accounting: Don’t Reinvent the Wheel When Accounting for Your Business’ Future
Every small business owner or manager must learn to differentiate between those business processes that must evolve and those that should remain stable. While evolving in order to meet changing consumer demands and an ever-shifting technological environment is essential, there are some business processes where change and evolution are counter-productive, even destructive. Financial accounting is one of these. A complete overview of the basics of financial accounting is way beyond the scope of this article. However, by sharing a few standard accounting concepts with you, I hope I’ll motivate you to perhaps take a little bit closer look at the financial statements your CPA slides across your desk next month.

An Accounting Overview for Non-Accountants
Whether you are a small business owner or a CEO of a multinational corporation, at the end of the month, quarter or a fiscal year, you have dealt with accounting records and financial statements. This article is for non-accountants, who try to understand what is accounting all about and how one can use it to make better business decisions.
US and International Financial Regulations
In this article we will look at accounting standards; discuss original purpose of their creation and consider the future of the financial regulation in general. We will get familiar with some of the major concepts of US financial accounting and its integration process into the global system of rules.

Understanding the Income Statement
Income statement can be viewed as a summary and final evaluation of company’s business activities for the past fiscal year. We will discuss the components of an income statement, their classifications and the ways it is connected to the other financial statements. After reading this article you will have a basic understanding of accounting principles behind the statement of earnings.
The Importance of Cash Flow
What is the cash flow statement and why is it required by GAAP? This article will give you an idea behind the cash flow statement and the basic principals used to create it. It will show the difference between the accrual and the cash methods of accounting for business transactions. Importance of cash flow
Poor Man, Rich Man: How Kiyosaki Fought His Way To First
“I still consider myself a little, fat kid from Hawaii,” says Kiyosaki. He may still be from Hawaii, but Kiyosaki’s impact on the world of personal finance has been anything but little. Today, as one of the leading authors and motivational speakers in America on strategies of achieving personal financial freedom, Kiyosaki has achieved a cult-like in the millions. How did this little, fat kid from Hawaii become a big, strong player in the extremely competitive industry?

The Magic and Tragic Words of Marketing
Magic words propel great ideas towards profitability. Tragic words doom great ideas to failure. Guerrillas know the difference.

Accounting for Non Accountants : Debit, Credits and Financial Statements
When people hear the term accounting, there is an involuntary reaction whereby the comprehension centres (the medical term) of their brains tend to shut down, and sleep mode is activated. This is unfortunate, as accounting, especially to a small business owner, can actually be quite interesting. It is one of the primary tools by which business owners and other interested parties can gage the success of their business, as well as identify areas that require attention and need improvement. To understand accounting, business owners need to have a basic understanding of how it works (debits and credits) and it's results (financial statements), explained below:
The Basics of a Financial Report that Anyone Should Know
There are a number of times that you may encounter a term such as a Financial Report. If you do not have any banking experience, this may sound like an alien language to you. At often times, individuals who are presented with a company’s report get turned off.

Why Doesn’t the Press Call, email, Text, Tweet?
PR/publicity folks are just like every trend follower..always ready to jump to the next "new/hot" thing. In their case to prove they are like way in front of the communications curve. Blogging? Fading. Facebook Like page (Fan page is out), Tweety? Oh yeah! Writing clean/concise/meaty releases, checking the Press Web Site? That is so yesterday!!! So what if the site is where media folks go to find/get news/data and where they go to get contact info? Just because the lowly company press room is pivotal for everyone, everywhere why should the person leading the charge stoop to make certain the company's press site had just the right information and that the information is easily available, fresh. We wrapped our many years of experience and feedback from media people into this article. Don't waste your best opportunities
3 Website Benefits that Improve Client Satisfaction and Retention
A website that doesn't make money for your accounting firm is a useless website. The primary method of generating revenue with your website is by using it as a prospecting tool. It's a great way to bring new clients into the firm but don't become so focused on client acquisition that you allow other opportunities to slip by. You can use your website to improve your client retention as well. Combined with client acquisition, improved client retention can really shore up your firms bottom line.

How great leaders use values to drive performance
Great leaders instinctively know the importance of values. Values create the organizational culture. When articulated and implemented consistently, values reduce the need for close supervision, engender trust and co-operation with suppliers and customers, and raise performance. Great leaders recognize this. That is why they commit substantial personal time to articulation and implementation of values. They are also good at mastering paradoxes of values.
Asset Allocations Insufficient In The New Economy
Last week I wrote about some stocks to keep your eye on in what is now becoming known as the “New Economy”. Whether or not you agree with the direction and steps that the government is taking is immaterial at this point, what is of the utmost importance is that you position yourself and your portfolio correctly

Buying An Existing Business Part VII of IX
This is the VII Part of a IX Part series of articles discussing the buying of an existing, small business. In this article we offer suggestions and tips buyers should use when conducting their due diligence of a small, existing business
Why Your Financial Statements Are Important
In today's business financial market, it is important to understand what bankers and other financial sources require of business owners. When accessing capital through traditional sources such as banking institutions, they must have specific financial documents from the party seeking to borrow their funds. Alternative Sources require said documentation but can take a different approach based on the borrower's situation.
Franchise Resales Part II - Due Diligence Tips
This is the second of a two part series dedicated to helping people better understand the give and takes of investing in a franchise resale.
The Importance of Directors
This article focuses on the importance of directors in closely-held companies. It discusses the factors that should be considered in selecting a director. The article explains how effective directors can help the management team.
Do not neglect Your Accounting Functions
In trouble times, outsourcing is the only solution. Neglect to your accounting functions can bring serious consequences. Not to mention, that the financial aspect is the second (the first one, of course, is the core of your business) most important function of your business. You financial position is view by a set of financial statements that speak for themselves. So, no matter how small or how big you are, it is important to keep all your accounting records straight. The great benefit that you gain is that you know exactly where each penny has been spent.

Before You Jump Ship: Four Responsibilities to Consider Before Starting Your Own Business
You've heard it before: starting a business can be one of the most difficult yet rewarding things you will ever do. Considering these four responsibilities before you start a company will help minimize the difficulty and enhance the rewards.
Franchise Legislation in Canada
A brief overview of Canada's franchise laws

Understanding the Bottom Line
What’s there to understand? The bottom line is the last line on the Profit & Loss (P&L) statement and it is either a profit or a loss. That’s all you need to know, isn’t it? Yes, it is important to know whether you are making a profit or losing money, but understanding how financial statements work is knowing the nature of each account and how it fits into the scheme of things. This article provides a broader understanding of the bottom line.

The Accounting Model: Accounting's Rosetta Stone
A brief but clear explanation of how debits and credits work.
Double-Entry Accounting: A Place to Start
A brief explanation of double-entry accounting and the framework upon which it is based.
CPAs vs. Non-Certified Accountants: Clearing up the confusion
A discussion about the difference between CPAs and non-certified accountants in terms of their educational background and services they can or cannot perform for the public.
ACCOUNTING PRINCIPLES & STANDARDS: AVOID THEM AT YOUR PERIL
Accounting principles are the basic assumptions, rules of operation, and essential characteristics that make up the framework for the construction of accounting financial statements. This article discusses the difference between principles and standards and why they are important.
How Do I Make Sense Of My Numbers?
We had a client the other day who made a great analogy when it came to understanding the numbers in his business. If you've ever seen the movie The Matrix, early on in the movie one of the characters (Dozer) is looking at a screen with a bunch of numbers and he sees all this activity. The main character (Neo) is looking over Dozer's shoulder and all Neo sees is a bunch of numbers. Are you like Neo or Dozer when looking at your financials? Do you see all the activity that goes on in your business, or are you simply seeing a bunch of numbers?
Is Business Planning Necessary For A Home-Based Business?
To be successful over the long haul, every one-person business needs to do some planning. The more organized the planning - the better the choices you will make. It is not necessary for you to have a full-blown business plan, like the ones used to raise hundreds of thousands of dollars for the start-up and growth of businesses with a lot of employees. For the one-person business a simple business plan will suffice.

Franchise Financial Information
As dictated by the Federal Trade Commission (FTC), franchisors are required to give prospective franchisees a copy of their Uniform Offering Circular (UFOC) document, which contains financial and material information about the franchisor.

Diagnosing a Troubled Company – Part II ©
This article is Part II of a series of articles. It suggests a number of criteria to consider in reviewing a company's financial statements. It also addresses why it is important to properly handle a customer's complaint.
Planning the Sale of a Business
Preparation is key in the process, and taking a step back months in advance before selling to make the improvements to the business, will only increase your chances of selling your business.

Victim of his own success
Small- and medium-sized businesses create products or services, they delivery those products and services; but in the current economy they can't finance the growth and either have to slow down or go out of business. They become victims of their own success.
Key Steps to Buying a Retail Franchise
Considering that sales from franchises account for billions of dollars in revenue every year, buying a franchise is statistically the safest way to own a business – provided you choose the right franchise.

Franchise Financial Performance
Your status as either a potential purchaser or merely a curious member of the public partially determines the amount and quality of information you'll be able to discover about the financial performance of a specific franchise. Potential purchasers are able to find out about a franchise's financial performance via the Federal Trade Commission's (FTC) Franchise and Business Opportunity Rule. Under the Franchise and Business Opportunity Rule, franchisors are required to make a series of detailed disclosures to potential purchasers, either in the Uniform Franchise Offering Circular (UFOC) form or in the form provided by the rule.
What you Need to Know when Buying a Business
Once you are aware of the benefits and risks associated with buying a business, and have found a business that matches your strengths and interests, you must then do a thorough examination of the operation.

Drawing the Wrong Conclusions
It is often said that numbers don’t lie. While the numbers in your financial statements are correct, the conclusions you draw from them may be wrong. This misinterpretation can cause significant revenue loss in your company.
Black Investors PLC of Britain Lends $13m to Microfinance Institution (MFI) Kagisano of South Africa
Black Investors PLC, a British investment company, has granted a ZAR 100 million (USD 13 million) long-term loan facility to Kagisano Financial Enterprises, a South African mass market credit provider. The loan will be earmarked for Kagisano’s advances book, bringing its value to over ZAR 300 million (USD 39.1 million). It comes during a period of brisk growth for the company, which has been opening about three new outlets a month as it offers new products and its customer base becomes more affluent. According to CEO Eugene van Niekerk, demand for Kagisano’s products has remained strong in spite of a high interest-rate environment. Black Investors PLC does not appear to have an Internet presence, and further information about the firm could not be ascertained.
FINANCIAL STATEMENTS FOR SMALL BUSINESS LOANS
Why are financial statements so important for getting a small business loan? What statements are needed in a loan proposal? What do each statement include? How do you go about preparing the statements?
Evaluation of Financial Statements
Financial statements provide the major means by which the objective of accounting is achieved - by communicating the financial results and financial position of an entity to its stakeholders, management, owners and other interested users. However, unless these statements are understood, their message will be missed, and accounting will have failed in its primary objective.
Buy or Start a Home-Based Business?
When it comes to starting a home-based business from scratch, the unknowns can be daunting. One alternative you might consider is to buy an existing business.
Annual Government Filings & Minutes - Corporate Maintenance and Compliance
Many new business owners are unaware of the important obligations that must be upheld AFTER they have formed a new business entity. All too often there are accounts of entrepreneurs starting a business, incorporating that business, then failing to comply with various government imposed formalities and filings. There are many ongoing government requirements that small business owners need to comply with, namely: annual government reports/returns and fees, notice of a name change, notices of change of registered office, directors and in certain jurisdictions, their shareholders. These forms are different than tax related forms such as tax returns, GST/PST filings and payroll deductions.
Don’t leave $money$ on the table when you sell your business!
Don't be fooled...the value in your business is not seen ONLY in the Financial Statements. In this article we focus primarily on "Potential" and how you can sell this aspect of your business to a buyer.

What is more important that Profit when buying or selling a business?
Warren Buffet says that there are key business drivers that will are key to telling the future profitability of business. And surprisingly it is not just about the past numbers. Using a clear guideline that Warren Buffet uses himself, a business owner or business buyer can look past the number to properly analyze a business for sale. Business sellers need to know about this because clearly identifying these are keys to selling a business for more money. Business buyers need to understand these so that they are not fooled by just focusing on the Financial statements.

When Buying or selling a business it is crucial to discover the competitive edge!
When buying or selling a business there are more important items than just financial statements to see the complete value of a business. Even if you have to pay more for a business with one of these business moats. It is well worth the extra expense to have a company that will stand the test of time. A business that will survive and even thrive in Good, bad or even flat economies.

Don't use Rules of Thumb when valuing a business.
When valuing a business to buy or sell don't focus too much on financial statements alone. While these are important aspects of the business they are not the only value drivers that the business has. The value of a business goes deeper than the industry that the business is in. More than the profit of the bottom-line of a tax return. When you want a quality business to buy or want to sell your business for the maximum price. It is crucial to discover the individual personal characteristics that the business has over it's competitors.

A Checklist for Franchising Your Business
Franchising your business is a major undertaking. Here is an essential to-do list for the prospective franchisor.
#1 Strategy to Achieve Financial Success in Biz
If you’re struggling financially with your small business, there may be one crucial reason why. Most entrepreneurs are clueless what and how important it is or how quick it is to fix. Read to see if it is you and what to do about it.
Loans for Small Business
For entrepreneurs looking to get loans for small business, the process is not as easy as it may look. Indeed, it is a complicated procedure that if done improperly can ruin your chances of obtaining funding altogether. For that reason, I am going to explore some of the ways you, as the entrepreneur, can maximize your chances of getting your loan request approved, and getting more money in your hands today!
Loans for Small Business
For entrepreneurs looking to get loans for small business, the process is not as easy as it may look. Indeed, it is a complicated procedure that if done improperly can ruin your chances of obtaining funding altogether. For that reason, I am going to explore some of the ways you, as the entrepreneur, can maximize your chances of getting your loan request approved, and getting more money in your hands today!
The Regulation of Franchising in PEI -- Franchise Lawyer Canada
This article examines the regulation of franchising in Prince Edward Island, Canada, pursuant to the Franchises Act of PEI. peter macrae dillon franchise franchisor lawyer attorney Toronto Ontario Canada www.franchiselaw.ca
You May be Ready to Sell—But is Your Business
Selling your business requires planning and thought across a number of areas-if you want to maximize its value. This article address basic steps you should take to make sure your business is ready for presentation to buyers.
Tips on Buying a Business in Canada
Considerations when looking at a business to buy in Canada

Other Financial Statements Related Articles

What Business Are You In
When I started financial planning it surprised me that what clients wanted far more than my expertise was an information processor. They were ready to pay someone to convert all the statements and other information coming at them from various financial firms into a form that they could understand.

FINANCIAL STATEMENTS FOR SMALL BUSINESS LOANS
Why are financial statements so important for getting a small business loan? What statements are needed in a loan proposal? What do each statement include? How do you go about preparing the statements?
Part 7: Funding Request
In this section, you will request the amount of funding you will need to start or expand your business. If necessary, you can include different funding scenarios, such as a best and worst case scenarios, but remember that later, in the financial section, you must be able to back up these requests and scenarios with corresponding financial statements.
Impress your bank manager! How to read your profit & loss account report
If you are relatively new to the business arena, you’re probably not too good at reading financial statements. But for someone who is planning to start a small business, it is crucial to learn how to read financial statements and understand what they mean. Today, we are going to discuss one type of financial statement called the profit and loss statement. A profit and loss statement is a summary of your income and expenses over a certain period of time, usually a quarter or a year. The profit and loss statement is important because it helps you to understand the profitability or financial condition of your company over that certain period of time.
Do not neglect Your Accounting Functions
In trouble times, outsourcing is the only solution. Neglect to your accounting functions can bring serious consequences. Not to mention, that the financial aspect is the second (the first one, of course, is the core of your business) most important function of your business. You financial position is view by a set of financial statements that speak for themselves. So, no matter how small or how big you are, it is important to keep all your accounting records straight. The great benefit that you gain is that you know exactly where each penny has been spent.

Business Relationships ( The Numbers )
The article provides insights into the value of business owners and financial managers understand certain key relationships of numbers in their financial statements
Evaluation of Financial Statements
Financial statements provide the major means by which the objective of accounting is achieved - by communicating the financial results and financial position of an entity to its stakeholders, management, owners and other interested users. However, unless these statements are understood, their message will be missed, and accounting will have failed in its primary objective.
Do Your Financials Need Therapy? Try Purpose!
Can you imagine your financial statements lying on a therapist's couch, seeking for advise on how to gain greater strength to face the market? They may appear perplexed and bewildered, not understanding why the numbers are so anemic or even what they mean. Many small businesses experience this. From my experience, a large portion of business owners have poor financial management. Did they make a profit? Then nothing more needs to be examined. If no, head scratching begins. The financial statements contain a wealth of information for managing the business. They must be closely scrutinized for the business to be successful. Not only that, but financial management includes so much more: sound practices, planning, markets analysis, objectives, and cash flow analysis.
Business Moat - Key to selling or buying a business.
When buying or selling a business there are more important things than the Financial statements. Now before you start rolling your eyes at this concept. I am not saying that the financial statements are irrelevant. The problem is too many business buyers think that they ONLY think that is important when buying a business is the P&L. When a buyer wants to understand the breakdown of Cost of Goods sold before they understand WHAT the business does and how it does it... This buyer is focused on the wrong concept.

The Importance of Your Business Financial Statements
The topic of financial records or statements has always created some anxiety for entrepreneurs. For those individuals thinking of jumping into the world of business ownership, this can be a daunting part on the path to entrepreneurial success. Not knowing the importance and meaning behind each financial document can certainly set anyone up for failure. It is critical that you understand and address the reason and need for each financial document that is applicable to your business.
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