In a nutshell, an income statement is one of your company’s financial statements showing the revenues and expenses during a particular period of time. It also shows how the revenues are turned into the net income or profit. There are two parts included in an income statement, as follows:

• Gross Profit:
  Typically found at the top of the income statement, this refers to the profit your business makes after deducting the costs involved with doing business. In short, it pertains to your revenue minus direct costs (costs associated with making and selling your products or services). A very good example is your retail store where you sell goods. Your gross profit is the income you generate from selling your goods minus all the expenses involved in producing and selling them.
• Net Income:
  Typically found at the bottom of your income statement, this refers to your gross profit after deducting the overhead expenses (anything not associated with generating revenue. Some examples of overhead expenses include facility rent and utilities, repairs and maintenance, salaries and wages for office staff, and professional fees. They may not directly generate sales, but they are vital in the overall business operation. Without them, your business won’t be fully operational.

If you’re doing the accounting for your small business on your own and these concepts are quite confusing, it’s best to hire a business accountant on the Gold Coast.

For tax deductible debt, the interest is considered an “expense.” Since expenses are allowed to be tax-deducted, it can be set against your taxable income—therefore lowering the total taxable income. Depending on how you utilize it, various tax deductions and concessions can apply, helping you improve your cash flow. This is where the help of a well-versed tax accountant, to maximize your tax deductions while figuring out ways to pay off your non-tax deductible debt.

STP now helps businesses align their reporting obligations to their processes. That said, companies can submit payroll information after payroll. Thus, this will make the process much easier and smoother, compared to fixing the reporting once a year.

Accountants are to proper bookkeeping as what site inspections are to long-lasting homes: you can’t have the latter without taking care of the former.

If you don’t have an accountant handling your firm’s finances right now, then act fast! Now, more than ever, is the right time to hire one. With the help of an accountant, you’ll be able to get a grip on your finances and ensure that every transaction is being handled and recorded as smoothly and accurately as possible. With this, you’ll be able to facilitate the implementation of easy, quick, and accurate daily book work with ease!

In the basic accounting equation, the total assets of your business should be equal to the sum of your liabilities and equity. Below is the basic formula:

Total Assets = Liabilities + Equity

• Assets:
  These refer to all the things your company owns. These can include property, cash, inventory, accounts receivable, and equipment.
• Liabilities:
  These refer to the obligations that your company has to pay. These include lease payments, merchant account fees, accounts payable, and any other debt service.
• Equity:
  This pertains to the portion of the company that belongs to the owner. For instance, if a number of shareholders own the company, then the stockholders’ equity will fall under this category.

Understandably, business planning and bookkeeping are treated as separate aspects, and each one has its own significant effort requirements to complete. As confident as you may be with how well your business plan could possibly work, becoming more aware of what your business needs also generates an overwhelming feeling of having to deal with your numbers. At one point, you may end up dealing with the overwhelming pressure of having to pick between business planning or bookkeeping due to qualms of long-term growth. To assure you, you can do both things at the same time.