Income Statement or Profit & loss

I think everyone appreciated the definition of sales/income and expenses but somebody might ask “when can I use these two accounting terminology in my business or to my future business”. Simply deduct the total expenses to the total sales/income and you will get your “net income/(loss)”.

Net income/(loss) in business means what remains after subtracting all the costs from total sales/revenues. Every entrepreneur loved to see of course net income instead of loss during month-end or even quarterly and yearly in their financial statement

Net income is one of the most important indicators of the financial health of a business.

Happy to send more information/topics to help and guide you.

Simple Bookkeeping-accounts definition

I've known a lot of small business owner doesn't know how to keep track of their expenses and revenues (sales or service income).  Simple bookkeeping will surely help business owner of knowing what are the accounts that are being use by the bookkeeper or accountant. They should also know what expenses or transactions should be included in a certain account. To enlighten small business owner here are some account definition that you should know for the meantime.

Sales or Service Income derived from the business is the  exchange of goods or services for an amount of money or its equivalent. Expenses are the overhead or cost of maintaining the business or generating income. Expenses includes cost of materials, employee salaries, rental, light and water, taxes, postal and communication and other expense account. 

Please expect more helpful information on this topic.

Accounting in Action

I've been in the Accounting field for years now. I see a lot of blogs about accounting so I thought, why not start my own blog to impart my knowledge. Accounting is very useful particularly in small to large scale businesses.

My blog aims to help people who likes to start a small business. When you start your own business, your concern is not only to manage it, but also to know how to prepare your own income statement, balance sheet, and trial balance. Even you can be your own accountant!

I'd also love to answer questions about accounts and help you with your analysis.