Dear reader, this week, let’s talk about the importance of you & those making decisions at your business completely understanding the Accounting system.
A Composite Challenge
Sadly, not all the schools in our system (public & private) teach the pupils enough about Accounting, Management, or Taxes for them to build a successful business!
Even at the undergraduate level, many professionals chose not to take courses in those three topics.
Then, there’s the hurdle of learning, using & keeping oneself updated on specialized software for Accounting & Taxes.
Thus, we have a composite challenge for Entrepreneurs trying to make sense out of their finances + complying with Uncle Sam!
Learning Topics IOOGO Experts Recommend You
So, which topics should every business owner know? We recommend three main lines →
Knowing your accounting reports, why they exist & how they resume your transactions will allow you to make data-driven decisions.
- Income statement: your business’ earnings and expenses by given period.
- Balance sheet: a snapshot of your business’ assets, liabilities & capital at a particular point in time.
- Cash flow statement: cash invested/spent/earned throughout a period.
Study some terms that apply to your business, like depreciation, LIFO/FIFO inventory, or Cost of goods sold. You can ask your Accountant about a specific set of topics.
This has several advantages:
- You become aware of your operations & their expenses
- You’ll make the most out of your Accountant’s advice
- You can save thousands of dollars optimizing processes!
Tax forms & percentages
Make a list of all the Taxes you need to pay, the forms to file & the estimated percentage of your income taken by them. For example:
- You file Income tax through one or several forms: 1120 (Corporations), 1120-S (S-Corps), 1065 (Partnerships), 1040 (Individuals), etc.
Extra Initiatives by IOOGO
We’ll love to see your growth as more than just an accounting-savvy business person! That’s why we have the following two initiatives:
- IOOGO Sessions: bi-weekly episodes to learn from special guests talking about their experience helping business owners.
- IOOGO Blogs: weekly bits of advice to add to your skillset! (2–10 min reads)
- The IOOGO Accounting way! Allow us to take the burden of doing your Accounting, Taxes & Reports; while you study & develop your business! You can schedule a Free Consultation with our experts by clicking here.