As a small businessman that we have to understand the importance of relations accurate and current accounts where we need accurate financial information to make very important decisions we take as owners and managers. Meetings often small entrepreneurs who are placed in a pickles not directing or not paying attention to important information provided in many program packages accounting. The estimate of operations to all trade, small or large is the fuel in your car. If you don 't have the right fuel or enough fuel in your car, do not go very far. Over the years are still amazed at how many small entrepreneurs fail to see the value in the process control accounting of their trade. I was always embarrassed at how small entrepreneurs could get away with the race of their trade without even using Quicken or QuickBooks. I've calculated it out. Most small businesses grow so fast that some of us don 't have the time to learn if not the concern about the accounting side of the market. Why should we care for accounting when we 'orders obtained the VE to be filled, to make happy customers and suppliers by directing? Well, the importance of esteem not only lies in the requirement archivare and pay the appropriate amount of taxes at the end of the year, but accounting also allows them important information in various provisions of relationship that allow you to the decisions we take in our astute small business. These reports tell us many things about our small enterprises not penseremmo never pe these reports also allow us plan the future of our trade while refers to sales and costs. Sure some of us have CPAs or accountants who give information on a monthly or even annual, where we should calculate our sources and uses of cash flow daily if not every week. The sources and uses of cash is exactly what it says it is. It defines where the money is coming (sales) and how we are using that (expenditure). The document reporting that helps to determine this process is our declaration of flow of money. This report really tells us in a summary of where our money have come and where I went. Another very important is the relationship of statement of income which tells us what we sold, has cost them to sell what we sold, how much we spent to operate the trade and finally our profit from all that work. There are four shares or parts of a declaration of income and are; sales, cost of goods sold (TEETH), costs (fixed and variable) and income. Some small businesses classificheranno the cost of sales (COS) rather than the TEETH. Costs of sales are for those businesses that really don 't must buy the articles in the form of raw material and riprodurrla to make them sellable. For example, as owner of a consultancy, we identify as our COS where if we are a contractor of the hydraulic system or a supplier of wooden chairs, we identificheremmo our TEETH as why should we buy the material of the hydraulic system as well as wood and play to convince both the finished products to sell. The report that follows is just as important as the previous two are the ratio of the budget. This report tells us what our trade goes through a particular window of time. For example, I know what my trade is true today for last month. The budget I say what I have and what should. This report has basically three shares really important; Activities, liabilities and equity owners. Each of these sections identify exactly what it says. The assets are those things that trade considers worthy something or those things we may get the cash inside for a pinch if we need. This section is also the bank section and other providers measure a business' value. The equipment, inventory and sometimes your effects of active clients is considered property. Yes, the effects of active customers can be converted into cash via a bank loan, but absolutely not suggest this for any trade. While many businesses take on loan against their claims in the short term, I would not ever for any of my clients. The responsibilities are those things that trade must such as short-term loans, credits long-term, salaries, taxes, the measure of Banks. this debt as simply old and it 's no good to have assigned it. Finally, Owner 's equity is the one that is due to people or groups of investors who practically have a right to be paid without regard to the success or failure of trade. It 's just that. We must identify which other individuals or groups actually have invested in our trade outside a typical bank loan. It's OK to have both a bank loan that a particular owner 's equity as a responsibility? Yes, as most businesses do. It is estimated that most of the trade in the United States is 80% financed via a mixture of both. So great, now we know about a bunch of reports. These reports are available to you through the entire package of programs that accounting used, but you have to use a software package accounts because these reports come from the accounting process that puts the information into customers or in sections that suited finally produce these reports . For each sale there is influence inside the process of accounting that finally compile the data in one of these reports previously and provide the right information to make a decision. The estimate of operations allows us see our successes and failures day, week to week and month during the month. We must examine these reports often to stay in business. I have seen many businesses go out of the market where when you ask the owners what has happened, all say the same, "we worked from money." He had those businesses paid a little more attention to accounting process that could still be in business. Remember, explaining in your small business is like the fuel in your car. There are many programs out there that help you understand the basic principles of accounting where everything you need to remember is that the functions of esteem outside of a case – and – carry out the principle. Each transaction in your business must be registered where the transaction is directed through a process of accounting software that basically works behind the scenes. All you have to do is to understand what is happening. For example, if I buy the value of $ 25.00 articles for office I must leave the software package accounts that customers want to know that transaction of interest. Another example would be if the value vendessi $ 200.00 product, I want the side accounting business knows what I sold by what I bought to sell. This last example is a bit complicated and the particular conserverò for another article which should remove the idea that in the first place you recorded the purchase of raw materials, produced something from it, inventariato it and finally sold it for $ 200.00. The bottom line is that explain the operations is of paramount importance to your small business. We often hire individuals who say they know accounting but about how we know if those individuals know the accounting when we aren 't too sure in this respect ourselves? There are many programs available to us as small businesses in which we can learn the basic principles of accounting. Sign up for a seminar or take a class at a university institute or a local university. Your small business is just too important to not understand it.
Aug 11