E-book

E-Book: Cash Flow Management Secrets

E-Books On Self Improvement

Cash Flow Management Secrets Your Accountant Never Shared

by;

Tom Shay

Disclaimer: .gifs, .Jpegs and other corresponding files used here are that of their respective owners, and not ICMax’s Blog.

Do you know these terms in accounting?

Profit & Loss Statement – This is also referred to as the Income Statement. It shows the income, expenses, and tells you how much profit (or loss). It is usually created for each month. Some businesses have 13 four week accounting periods instead of the traditional 12 months.

Balance Sheet – The balance sheet indicates the value of the business. It has a list of the assets and liabilities. It is similar to the financial statement you create when you go to the bank for a personal loan.

Current – On a balance sheet, current indicates anything that can be expected to be changed to cash within the next 12 months if it is an asset. And if it is a liability, it is anything that is scheduled to be paid in the next 12 months.

READ ALSO  E-Book: Playtime to Paytime, Make Money From Hobbies

Long Term – The opposite of the definition for current, these are assets and liabilities that are not expected to change in the next 12 months. With regard to a loan that you would owe, while there is a part of the loan that would change from long term to current each and every month, most accountants move items from long term to current only once each year.

Cash Basis – Most people think they are on a cash basis accounting system. This means that with the completion of each accounting period (usually a month), all of the bills have been paid and all of the outstanding balances have been collected. Technically, a business uses either a cash or an accrual based accounting system.

READ ALSO  E-Book: 404 Self Improvement Tips

Actually, many businesses do have accounts payable and accounts receivable that exist from month to month yet retain the identity of a cash basis accounting system for all other areas.

Accrual Basis – Again, we have an item that is the opposite of the previous definition. With cash basis, there are incomes and expenses that have occurred over several months, but are posted in only one month (i.e. income tax, property tax, business forms) With accrual basis, these and other incomes and expenses are posted over several months to provide a more accurate picture of what occurred in your busin…

Scroll down to read PDF file. Viewers that would like to download this document will need to be logged in. Upon successful log in, you will see a download link under the PDF document. Click on “Download File” to download the PDF file.

READ ALSO  E-Book: How To Win Friends And Influence People

You will need a PDF enabled device to access the file offline. Visit the E-library for more e-books. Use the menu at the top bar to navigate.

Read: Cash Flow Management Secrets by Tom Shay

Drop comments in the comment box below. Can’t find what you’re looking for? Use the comment section or our contact page to reach us.

ICMax’s Blog.

HAVE QUESTIONS OR CONTRIBUTIONS? DROP THEM HERE. !!!

This site uses Akismet to reduce spam. Learn how your comment data is processed.