In our previous blog, we discussed why it is important for a business to create financial reports. We also talked about 5 important ingredients that any SMB owner should consider while preparing the financial reports for their organization. In this blog, I will delve in detail about one of the most important ingredients of a Financial Report which is Profit. As it is rightly said,
Profit is not something to add-on at the end, it is something to plan for in the beginning
There are a lot of numbers you can look at in your financial reports, but what’s the bottom line? Well the fact is that profit is the bottom line – literally at the bottom of the most important financial report – your ‘Profit & Loss Statement’, or a ‘P&L’ as some call it. Profit tells you how much money you are left with after paying all of your expenses. This is a great place to check and see how your business is performing. If you take a look right now at your profit from the last 12 months, what do you see? Is it a big number? Or a negative number?
Continue reading Profit is the Bottom Line
After more than three years of debate and revision, the 20-year old reporting model for nonprofits is being replaced with a new and improved Accounting Standards Update (ASU). ASU 2016-14 presentation of financial statements of not-for-profit entities calls for big changes in the way not-for-profits report financials. It will change the way all nonprofits classify net assets and prepare financial statements.
FASB (Financial Accounting Standards Board) believes that this update will improve the financial statements of nonprofits and will provide more useful information to donors, creditors, grantors and other financial statement users.
This article lists the top 3 changes in nonprofits financial reporting that will be effective for fiscal years beginning after December 15, 2017 and for interim periods within fiscal years beginning after December 15, 2018.
Continue reading FASB’s New Standard Aims to Improve Nonprofits Financial Reporting
A balance sheet is like a thermometer for SMB owners that provides a reading on the health of their business and ignoring it can be fatal to a business as it records all the assets, debts and shows the ‘net worth’ of the business at any given time. A company’s balance sheet gives a quick sense of the business’s health and liquidity as well as its ability to generate cash flow but it is only when the balance sheet is healthy.
So the question is, what should an SMB owner do to improve their balance sheet and make it a healthy one?
In this blog, we will highlight three helpful tips for SMBs to improve their balance sheet
Continue reading How SMBs Can Improve Their Balance Sheet
SMB owners are often so focused on growing their business that they neglect an important issue – payroll compliance. From payroll and benefits to hiring processes, employee relations and risk and safety, SMBs must adhere to regulations or else run the risk of being penalized. According to the Department of Labor, a massive 80% of employers have some degree of non-compliance with wage-hour laws and the wage and hour division collected more than $266 million in back wages for more than 280,000 employees in 2016
In this blog, we will highlight the top 3 common payroll compliance errors made by SMBs
Continue reading Top 3 Common Payroll Compliance Errors made by SMBs
Countless unexpected issues can pop up for SMB owners that create seemingly overwhelming challenges – many of them financial in origin. The most common issues faced by SMBs are: maintaining a positive cash flow, not getting accurate reconciliation reports on a monthly basis, and securing funding for the company’s growth. Fortunately, SMBs can easily manage these issues through with a solid financial process and reporting.
In this blog, we’ll talk about the 3 biggest financial issues that SMBs face, as well as tips to help them manage these issues.
Continue reading Top Financial Issues SMBs Continue to Face and How to Fix Them