Knowing the basics of accounting is one of the essential skills of the entrepreneur, in particular to control his balance sheet or even understand his income statement. As talented as he can be in many areas to run his business, he must master what will allow him to make his business sustainable: accounting. Accounting, the key elements mastering the basics of accounting enables you to run your business. It allows you to accurately analyze the situation of your company. Three points are essential to know: the balance sheet, the income statement and the passage of entries to manage your business. The key elements lie in the determination of the active and passive situation of the company as well as the fact of indicating precisely the activity during the exercise.
The Essentials of The Balance Sheet
A company’s balance sheet is a table that shows its financial situation at a given time, generally when the accounts are closed. We are talking about corporate photography. It shows what the company owns (assets) and what it owes (liabilities). it consists of two columns: assets (on the left) and liabilities (on the right). The assets of the balance sheet summarizes the list of assets and the allocations of financing Manufacturing Directors Email Lists resources and is located in the left column of the table and contains, among other things: intangible assets (software, website, patents, licenses, etc.) tangible fixed assets (land, buildings, machinery, large tools, etc.) financial fixed assets (financial securities, guarantees, etc.) stocks of goods and raw materials customer, tax and social security receivables still due on the balance sheet date cash.
Bank Accounts Marketable Securities
Other cash investments, etc. the liability of the balance sheet summarizes the origin of the financial resources made available to the company and is located in the right column of the table and contains among others: the company’s equity (share capital, operator’s account, reserves, retained earnings, financial result and possibly issue premiums) financial debts (the amount of bank loans remaining due and the Asia Email List associated current accounts) supplier, tax and social security debts still due to the company on the balance sheet date to ensure the accuracy of the balance sheets, you can usually be certified by an auditor. What is the income statement? The income statement takes into account the operations that have an impact on the result. In particular, it takes into account revenue and the goods and services consumed.
