The term “articulation” doesn’t really sound like an accounting term. However, understanding articulation is key to understanding accounting and dare I say the key to understanding business. Yes, it is that important in business! The quick answer to what is articulation, is that it is the interrelationship between the financial statements. However, that definition is…
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The objective of accounting is to provide outsiders, such as investors or lenders, some information on the strengths and weaknesses of the business. This is accomplished by offering financial statements. Since investors and lenders are outside of the business, they need a way to get information about what is going on inside the business to…
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Financial statements are provided to allow people outside of the company to better understand the strength, profitability, and risk of the company. The balance sheet is one of the key reports used for financial analysis of any company. The balance sheet provides a ‘snapshot’ in time of the company. What this means is the balance…
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It is often overlooked that the reports made by accountants are not made FOR accountants. Which is why understanding financial statements should definitely NOT be a job for the accountant but instead for the business person. Whether that business person own a small business or work as an executive for a multi-national corporation, it is…
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What is QuickBooks? Starting a small business as an entrepreneur is scary enough until the dreaded accounting word comes up. Let’s face it, most small business owners are following their passion and not looking for reasons to do accounting. Here is where QuickBooks accounting software enters the picture. So then, what is QuickBooks? QuickBooks is…
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