Recent Articles

Income Statement

The more proper name for one of the four main financial reports customarily prepared by accountants. It is usually the primary statement and is often referred to as the Profit and Loss Statement. It presents the total revenue generated and the associated costs/expenses and the net profit earned by the business during an accounting cycle.

P&L Statement – Best Format for Salons

02/01/2017

An owner of a hair salon needs a well organized and properly formatted profit and loss statement (income statement) to properly evaluate performance.   There are multiple presentation formats used in the service industry, but after 21 years of [...]

Profit and Loss Statement Using Class Accounting

09/27/2015

Class accounting breaks down sales and the associated cost of sales into functional groups.  Whether you use divisions or departments or product/service lines class accounting allows you to identify those more profitable areas of operations.  This [...]

Financial Statements for the Small Business

07/02/2015

Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame.  Accountants record monetary transactions and via financial reports present the information in an easy [...]

Returns, Allowances and Discounts in Accounting

12/24/2014

In the revenue section of every income statement (profit and loss statement) is an adjustment group to sales.  This group reflects the value related to the actual sale of the product or services.  This adjusting group is comprised of three [...]

Accounting

07/21/2014

Accounting refers to the business function of recording economic activity.  Accounting includes the processing of information and a reporting role.   The accounting term encompasses a broad range of functions for every business.  It starts out [...]

Profit

06/17/2014

Profit refers the earnings from the business operations.  It customarily means the bottom line of the business income statement or its profit and loss statement.  For many business owners, it refers to the amount earned before income taxes are [...]