Back to Basics; ACCOUNTING 101

When you’re running a small business, it’s probably to solve a problem or offer a creative product. It’s mostly not because you’re an accounting pro or anything.

No entrepreneur can afford to dive deep into the financial health of their businesses, no matter how much they love it. So, how about learning the fundamentals of business accounting instead? 

This article will eventually save you lots of time as well as money. So read carefully! 

Business Accounting- The popular definition by accounting firms in San Antonio is that accounting is to systematically record, analyze, as well as interpret any business’s financial information. Business owners like you use the process of accounting in order to track their financial operations. It is also to meet legal obligations, as well as make business decisions that are stronger.

Basic terms of Accounting include- 

1. Income statement: This displays your company’s profitability. It tells you how much money your business has made or lost.

2. Balance Sheet: This is a snapshot of your business’s financial standing at any single given point in time. It shows your business’s retained earnings as well. 

3. Profit and Loss or P&L Statement: A statement that shows your business’s income and expenses at any single given point in time. 

4. Cash Flow Statement: This analyzes your business’s operating, financing, as well as investing activities. Basically, it shows how and where you are receiving as well as spending your money.

5. Bank Reconciliation: It is to compare the cash expenditures with the overall bank statements. This way, it helps in keeping your business records consistent.

Apart from these extremely basic terms, there are some more that will be useful for you to know. These include basic definitions like debits and credits, accounts receivable and accounts payable, accruals, assets, and liability, burn rate, capital, cost of goods sold, depreciation, equity, expenses, fiscal year, profit, and much more! Dig a little deeper into these basics, and you’ll find yourself going a long way. 

Even when you decide to hire an accounting firm, for their payroll services in San Antonio or anything else, you should always know about the basics of accounting. This way, no one will be able to fool you out of your money, and in general, you’ll feel more confident about handling your business! 

In the end, remember that even when you do know about the basics of accounting you can hugely benefit by hiring professionals for it. Make sure they are firms that you trust and can rely on! 

SUMMARY:

Uhlenbrock CPA is an accountant in San Antonio that provides professional accounting services to its customers for many years now. They are accurate and as precise as one can possibly be when it comes to giving one of the best payroll services in San Antonio. Apart from tax services and bookkeeping in San Antonio, they also offer a variety of other accounting services that include IRS audit representation, etc. In all these years, they’ve always been known for their punctuality as well as client relationships. With extensive experience in accounting, their skill set is wider than other accountants. 

You can visit them at      

Website: www.uhlenbrockcpa.com

Contact number: 210-701-1040