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Discover whether the cash basis approach is the right fit for you with our latest article. Perfect for business owners looking to refresh their finances! 💡 https://lnkd.in/erzSn2EY

Discover whether the cash basis approach is the right fit for you with our latest article. Perfect for business owners looking to refresh their finances! 💡 https://lnkd.in/erzSn2EY

Discover whether the cash basis approach is the right fit for you with our latest article. Perfect for business owners looking to refresh their finances! 💡 https://lnkd.in/eiKz28xh

Why does your financial statement never tell the full story? You’ve likely noticed this: The numbers in your books don’t always match reality. Cash is tight, yet profits look healthy. What gives? - The timing doesn’t line up. - You’re paying for things that haven’t even been booked yet. Revenues show up, but cash doesn’t follow. This confusion often comes from two different accounting methods: cash basis and accrual accounting. With cash basis accounting, revenue is only recognized when cash is received. Accrual accounting, on the other hand, recognizes revenue when it’s earned, not when cash comes in. But that means your books could look profitable while you’re actually struggling to pay bills. Both methods have their place, but they don’t always tell the complete story. If you’re missing the key differences, your financial picture might be clearer... or more confusing. Understanding the right accounting method can make or break your financial strategy.

Let’s talk about bank accounts. Yes, accounts, plural, all small businesses should have more than one. Maintaining separate bank accounts for various purposes, such as taxes, operating expenses, and savings, can help streamline financial management and ensure that funds are allocated appropriately. This practice not only facilitates better budgeting but also minimises the risk of overspending or encountering cash flow issues. #PlatinumAccountingAustralia

🌟 Understanding Cash Flow Statements for Beginners 🌟 A cash flow statement is a crucial financial report that tracks the amount of cash and cash equivalents entering and leaving your business. It helps you understand how well your company manages its cash to pay bills and fund operations. Here’s a quick breakdown: Operating Activities: Cash received or spent on day-to-day business operations. Investing Activities: Transactions involving the purchase or sale of long-term assets. Financing Activities: Cash exchanged between the company and its owners or creditors. By monitoring these areas, you can make smarter financial decisions to keep your business thriving. Want to dive deeper? Check out this comprehensive guide to cash flow statements: https://lnkd.in/e7_VFHVx #FinanceBasics #CashFlow #BusinessHealth

With all eyes on the election, and discussion around the key issues, taxes, economy and business health are front and center. Regardless of who wins the Presidency, business owners need to have a clear understanding of the financial data for their business. This means seeing the facts clearly and with full transparency. Examining the facts allows for making decisions based on real information. This means looking for places to improve or grow and finding cost-saving measures. Check out the most recent blog post from Supporting Strategies Nick Pedro for tips on how to use the data to support business health, find cost-savings and more. https://lnkd.in/d67AkcmK #businessfinances #accounting #financialdata #bookkeeping #recessionproof #electionday

Is your business struggling to stay profitable despite strong sales? Discover the Profit First methodology, a revolutionary approach to financial management that prioritizes profit. Learn how to set up multiple bank accounts, determine allocation percentages, and maintain financial discipline. Check out our latest blog post for a comprehensive guide! https://lnkd.in/eiG_MS2t #ProfitFirst #FinancialManagement #SmallBusiness

Explore the fundamental concepts of liabilities in accounting, featuring common examples such as loans, accounts payable, and accrued expenses. This guide demystifies how liabilities impact financial statements and the overall financial health of a business. . . . #TFP #Liabilities #Accounting #AccountingServices #TheFinoPartners 

Looking to get in control of your finances in 2025? Embracing the latest financial tech is a great way to put yourself in the driving seat. We’ve got five ways to boost your finances. #finance #accountingtech #businesstips https://lnkd.in/eJh2gV9G