It’s been few years since you are running this business. You are about to end this financial year and now you want to know – What is my actual business worth? Most small business owners consider only revenue while assessing their business worth. However, they rarely consider one fundamental thing in the calculation – Fixed Assets. An example of…
Journal entry is the go-getter in Accounting. Anything and everything in Accounts can be done through a Journal Voucher. Let’s see some of the important transactions that require a journal entry. 1. Fixed Asset Purchase. Any business purchases few fixed assets for smooth functioning like Computers, Office Space, Printers, Servers, Trademarks, etc. Such transactions are…
One of the most popular methods of financing is borrowing. Loans can be short term, long term, secured, or unsecured and should be recorded accordingly. It is important to keep track of the principle and interest amount, and record them respectively in books for correct accounting. Classification is vital as ‘interest’ paid on loan is…
Owners or co-founders keep investing in their own businesses during early stage of their startup or even at later stage. This helps them to improve the company’s cashflow or make funds available for new equipment, paid marketing or hiring additional staff. Recording capital investments of your own money or your business partner’s money is important for keeping company accounts…