The income statement is a very straightforward report on a business’ cash generating power. For example, if a business earned a 15% profit on $100,000 in sales for the month, the income statement will show they earned a $15,000 profit. When a business owner completes his balance sheet, this month’s income statement will be included in the company’s total equity balance. This section includes...
October 2020
You’ll likely need to call in an accounting professional for the transition. Startups need rigorous accounting to ensure they survive the threats faced by fledgling businesses. These include limited cash flow, unproven market fit, and spiraling costs. In fact, according to OnDeck and Ocrolus, 70% of small businesses have less than four months of cash to cover operating expenses. When making a decision...