Using Accounting Ratios in Your Small Business

7 Jan 2014

Now that you have a better idea understanding of your Balance Sheet and Profit & Loss Account, there are a number of ratios and KPIs (Key Performance Indicators) that you can work out from the information in the accounts. These ratios and KPIs can be extremely useful when measuring the profitability and value and liquidity of your business. They can also be very helpful in identifying trends and potential weaknesses and risks in your business.

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Demystifying Your Accounts Part 4 - The Balance Sheet

30 Oct 2013

Generally, a company's annual, or management, accounts containg the Profit & Loss Account (as discussed in part 3) and the Balance Sheet. While the P&L gives an overview of the company's performance for a specific period of time, the Balance Sheet shows you what the company owns and owes at a specific point in time.

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Demystifying Your Accounts Part 3 - The Profit & Loss Account

4 Oct 2013

If you want to keep an eye on the finances of your company, there are two key financial statements you need to be familiar with: The Profit & Loss (P&L) and the Balance Sheet. We’ll deal with the Balance Sheet in Part 4 but for now lets cover the mighty P&L.

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Demystifying Your Accounts Part 2 - Account Categories

26 Sep 2013

In part one we covered off “Journal Entries” which are the building blocks of your accounts. These journals go into “Accounts” which can be loosely categorised into 5 types Revenue or Sales Expenses Assets Liabilities Equity or Capital

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Demystifying Your Accounts Part 1 - Debits and Credits

17 Sep 2013

Welcome to the Cloud Accounting Basics series. Written mainly for Cloud and Xero users, its also good for those who just want to have a better undertsanding of their accounts. Isaac Newton (there’s a smart cookie) said “For every action there is an equal and opposite reaction. This is the third law of motion. The first law of accounting is

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