Accounting

Business Basics: Gross Profit and Gross Profit Margin

Your gross profit and gross profit margin are two of the key ingredients in a successful business. Even though revenue is important, your firm’s gross profit is more relevant. In addition, the gross profit margin provides the cash your business needs and it drives the bottom line. Maintaining healthy profit margins on individual sales is critical since one losing product line can have a significant negative impact on your company.

Should You Pay for Audited Financial Statements?

Should you, the owner of a privately held business, pay for an accountant or accounting firm to compile, review or audit your financial statements? For the vast majority of business owners, it’s a choice. The correct answer to “should I” is not readily apparent. It’s a judgment call.

Bookkeeping and Accounting Basics

While keeping track of your business's finances may seem overwhelming, it's not that hard when you know the basics of accounting and bookkeeping. Bookkeeping and accounting share two basic goals:
A. To keep track of your income and expenses, which improves your chances of making a profit.
B. To collect the financial information necessary for filing your various tax returns.