Outsourced Accounting Archives - Page 2 of 3

What is Gross Margin and Why is it Important?

by Zane Stevens | Oct 7, 2021 | Bookkeeping, Outsourced Accounting, Wine Industry | 0 comments

As a business owner, you understand how important bookkeeping is. The information a professional bookkeeper can provide will allow you to make informed decisions about your business. One piece of information your bookkeeper can provide is your company’s current gross margin or gross profit margin. Gross profit margin is a good yardstick for measuring how efficiently your company makes money from your products and services because it measures profit as a percentage of sales revenue. You can use your gross margin to compare your company’s profits to others that have different sales revenues.

Gross Margin Defined

Gross margin is the profit you’ve made after you subtract the direct costs of your products and services. It’s typically calculated as a percentage. A positive gross margin indicates that you have made back your costs and then some. A negative gross margin, on the other hand, means that it cost more to make your products than you made from selling them.

Essentially, the percentage is how much of a dollar you make as profit. For example, if your profit margin is 42%, you are making 42 cents for every dollar spent as profit. In other words, you spend $1 to sell your products, then make $1.42 from each sale. This means you paid back what you spent and made 42 cents in profit.

Calculating Your Gross Profits

To calculate your gross margin, you first need to determine your gross profit. To do that, first add up all of your sales income. Next, add up all of your costs that are associated with manufacturing, procuring, and selling your products. Now that you have your gross profit, you can divide it by your total revenue. The resulting percentage is your gross margin.

Here’s an example. Say that your company made $100 million dollars in income. After subtracting out all of your expenses, you get a gross profit of $32 million. Divide 32 million by 100 million, and the result is 32%. That’s your gross margin.

Gross vs Net Profits

One important fact to remember is that gross margin is not your total profit. There are some indirect costs it does not take into account, such as taxes, licensing fees, and other expenses. Net margin or net profit deducts all of your expenses and costs from your revenue. It represents your true profit. Net margin, like gross margin, is very useful to business owners. Both percentages are useful when making decisions about your company.

What Information Can a Business Owner Gain from their Gross Margin?

Gross margin can provide business owners with a number of key insights that can be applied to maximize profits and minimize loss. First, it can tell you if your prices are too low, your costs too high, or both. If you have a very, very small profit margin, then you may not be charging enough for your products to fully offset your costs. You may also be paying too much for raw materials or for the manufacturing process.

Some businessowners make the mistake of assuming that just because their sales are good, they are profitable. Others may believe that their high gross profit margin indicates that they have good sales. Both of these statements can be true, but that’s not always the case. You may have thousands of sale transactions within a quarter yet still not be making a profit because your prices are too low or costs are too high. On the other hand, you could have a good profit margin yet not be making as many sales as you could be.

Knowing your gross margin will help highlight these issues. You may discover that you are making a very small profit even though it seems like your sales are good.

How Gross Margin Can Help in Calculating Prices

When calculating your gross margin, you’ll also calculate your overall product costs. By looking at these numbers, you will be able to determine if you are selling your product for too little or too much. High sales but low profit margins may indicate that you are under-valuing the product. Low sales but a high margin could also indicate that your prices are too high.

A good bookkeeper will remind you that you cannot look at gross profit margins in a vacuum. There are many factors that can affect pricing, and you need to take all of these factors into consideration. The market sets the prices. If the market dictates lower prices, you will need to adjust your costs in order to meet those prices.

Gross Margin Also Provides Insight into Labor and Material Costs

In addition to looking at price, you can also use your gross margin to see what you’re spending on your products and services. New business owners may be surprised at how much they spend. If your gross margin is low but you feel that your prices are fair, there are two factors to consider. One factor is marketing, but that is a separate area of discussion.

In relation to gross margin, the factor you will want to focus on is your overall costs. Are you spending too much? You may want to consider alternative materials, new partners, or renegotiating current contracts to lower these costs and grow your business.

Who Should Pay Attention to Gross Margin?

All business owners should consider their gross margins on a regular basis, whether that’s monthly, quarterly, or annually. Small business owners can use gross margin to help them determine if they are pricing products correctly or if they could potentially save on costs. Marketing experts can look at gross margins to see if their marketing plans are meeting their goals. Even experienced business owners and bookkeepers can use gross margin to compare previous fiscal years and project their company’s growth over the next few periods.

If you have a bookkeeper, they can calculate your gross margin and help you understand what it means in terms of your profits, expenses, and sales. However, if you don’t have a bookkeeper, you run the risk of miscalculating your margin or not fully understanding how to use it to make financial decisions.

If you’re in need of a bookkeeper, Protea Financial is here to help. We provide bookkeeping, payroll, compliance, and inventory management services to wineries of various sizes. Contact us today with any questions or to discuss partnering with us.

We can help calculate your gross margin. Find out how!

What Makes Wine Accounting Complicated?

by Zane Stevens | Sep 30, 2021 | Bookkeeping, Outsourced Accounting, Wine Industry | 0 comments

You may have only been drinking wine made in the United States for a few years, but people have been making wine in this country for nearly 500 years. American wine was an undervalued industry for decades, and it has only been in the last 50 years that people have really savored good wine made in America. If you are in the wine business, you already know that the winemaking industry is a different business, especially when it comes to accounting practices. Accounting for wineries and vineyards is difficult. To make things easier, you’ll need an accountant with experience in winery and vineyards, specifically. Anyone without that experience is more prone to making mistakes, which could lead to financial woes for you.

Two Types of Accounting in One Business

Most agricultural bookkeeping—whether with crops and crop rotation, produce, or livestock—is straightforward. Accountants in the agriculture business only have to keep one set of books. However, the wine making process is different in terms of accounting. In reality, there are two types of accounting going on at the same time in the wine business.

Cash Accounting

First, in accounting terms, vineyards—the fields where the grapes are grown—operates as a traditional farm. This means that farmer built arbors or trellises to hold the grapevines, planted the grapes, waited for them to mature, and harvested them. The farmer handles pesticides, replanting, and other issues with a vineyard. The farmer selects specific grapes to grow depending on the type of wine desired, the soil conditions, and the planting or growing season. Because vineyards are an agricultural crop, accountants can keep the books as a cash accounting business.

If the grower has a vineyard without a winery, the cash accounting method of bookkeeping is still acceptable because the crop is planted, grown, and harvested in a cycle that typically spans one growing season. Payments for the growing season occur at one specific time.

Accrual Accounting

Many vineyards are attached to a winery business. If you own both a winery and a vineyard, the cash method of accounting isn’t enough. Wineries must be measured on an accrual accounting basis. In accrual accounting, revenue and expenses are recorded in the books at the time of the transaction. Many wineries use accrual accounting as part of the bookkeeping process, because not all wine sells at the time of bottling. A bookkeeper would record expenditures for wine barrels at the time of the barrel purchase. The wine that goes into that barrel may not be sold for months or years, at which time the bookkeeper records the revenue. Cash accounting is easier than accrual accounting, because expenses and revenues happen in the same growing season. Accrual accounting takes someone with far more knowledge of accounting practices.

Because of the operations of a winery with a vineyard, a wine accountant must be able to balance two books—using cost and accrual accounting practices—rather than a single ledger.

Wine Production Has a Long Expenditure Capitalization Process

Not only does a wine accountant need to manage two books, they must also understand the long period of vineyard growth. Beginning operations as a vineyard is an expensive initial investment. After you purchase the land, you must pay for arbors or trellises for the grapes and pick the type(s) of grape you want to plant for winemaking. Grapes used in winemaking take several years to grow and become good wine producers. People who plant vineyards must be in it for the long haul, and not mind excessive spending with a return on investment in years rather than months.

Wine accountants know that to operate a successful winery, expenditures must be capitalized throughout the growing process. When commercial production begins, the accountant can begin to account for both expenditures and income on the ledger. Capitalization is important during the wine production process to allow the business room to grow without all of the expenses taking the operating and production capital out of the business when production begins.

Cost Accounting Is Different For A Winery

When an accountant uses the cost accounting procedure for a winery, they must use a non-traditional method. Two of the processes during making wine, crushing grapes and bottling the wine, take a short amount of time. That means the expenses or income happen quickly. However, two other processes for winemaking are long term. Wine is aged in barrels for a period before it is poured into a bottle. After the wine is poured into a bottle, it is aged again. Any costs incurred here happen over a period of months or even years. In fact, the higher grade a wine is and the more expensive it is, the longer the aging process takes.

Activity-Based Cost Analysis

In activity-based cost analysis, costs are assigned by wine type. That way, an accountant can figure the cost to produce the wine by the gallon or by the bottle. However, activity based cost analysis can get complicated for an accountant. Each wine has a different storage time, and this impacts cost accounting. Wine accountants must take shrinkage into consideration, as the volume of wine in a bottle shrinks during the aging or bottling process. A winery may sell some of the wine in bulk in the barrel or in the bottle before it is aged. Also, wineries may value inventory in different ways, including last in—first out, or by the dollar value of each bottle.

One other factor that wine accountants must take into consideration is charitable donations of bottles and the effect on inventory. Wineries are often asked to contribute bottles to charity auctions, and it is good advertising for any winery or vineyard. Because each bottle must be accounted for, a wine accountant must check inventory against a list of charitable donations of wine bottles.

Let Protea Make Wine Accounting Less Complicated – We Are Here to Help

Wine accounting is understandably complex, especially if you own or manage both a winery and a vineyard. If you are the owner of a winery and a vineyard, you want to find an accountant who is familiar with the bookkeeping and inventory practices of wineries. Don’t trust your accounting to someone who isn’t familiar with keeping books for the wine industry. When you need a wine accountant, contact Protea Financial, and let us help you keep the best books in the wine business.

Uncomplicate Your Finances. Turn to a Winery Bookkeeper!

Cut Your Winery’s Operating Costs with a Winery Bookkeeper

by Zane Stevens | Sep 16, 2021 | Bookkeeping, Outsourced Accounting, Wine Industry | 0 comments

Operating a winery is a challenging job. It requires an in-depth knowledge of many aspects of growing produce. You need to understand your plants, keep your soil healthy, watch for signs of infection or pests, and know when your plants are ready to harvest. Then you need to harvest your grapes and go through the entire winemaking process. Once the wine is bottled, aged, and ready to sell, you then need to take on the marketing of your product.

As the owner, it is your job to keep track of all aspects of this business. You need to know your details readily, including expenditures and income. Not having accurate finances can cut into your bottom line. It can even cost you money instead of making a profit. Some business owners struggle with this aspect of their winery as they do not properly keep up with the numbers of the business. That is when outsourcing to a winery bookkeeper may be the best option to prevent your winery from taking a loss.

By outsourcing your winery’s bookkeeping to a bookkeeper who understands the wine industry, you can reduce your operating costs. There are several benefits to using an expert bookkeeper that make it worth the cost. By knowing your strengths and weaknesses when it comes to running your business, you know where to reach out to experts. This is one of the easiest places to seek help.

What Does a Winery Bookkeeper Do?

A winery bookkeeper can assist you with virtually any task related to managing your finances. They will oversee your accounts payable and accounts receivable. Plus, they work with clients to ensure that invoices are paid in a timely manner and communicate with vendors to make payments. They will also reconcile your monthly bank statements with your internal financial documents and coordinate with the bank if there are any issues.

Tax preparation is another task that a winery bookkeeper can assist with. Your bookkeeper can work closely with your accountant on your annual tax returns. They can gather much of the information your CPA needs, reducing the amount of work your accountant must do. This, in turn, can reduce the cost of your professional accounting services.

Depending on your organization, a winery bookkeeper may even take on tasks related to inventory or order tracking. Some even manage all aspects of the winery’s inventory. Your bookkeeper will also be a sounding board for financial decisions you need to make. They can provide expert advice on potential projects or expansions.

Where a traditional bookkeeper would have to take time to look up regulations or requirements, a winery accountant knows these things from experience. What that means is you pay for fewer hours hiring a winery accountant, but get more accurate and detailed financials as a result.

How a Winery Bookkeeper Can Save You Money

Using a bookkeeper instead of handling your finances yourself will reduce your operating costs in several ways. To fully understand where these savings come from, you must look beyond the cost of using a bookkeeping service. Here are some of the ways you can reduce your overall costs of using a winery bookkeeping service.

Focus Your Efforts Where They Are Needed

As the owner of the winery, you likely handle many different aspects of running the business. This often includes many or all your financial tasks. If you had an expert to handle that work, you would be able to refocus your efforts on tasks that only you can do. By giving you back some time, you can focus on earning more income for your winery in that time. Bookkeeping is not something that requires your personal attention, but making major business decisions is.

You can also leave all the bill paying to your bookkeeper. It is often their responsibility to ensure that your bills get paid, accounts are billed, and payments are received on time. They then track these expenses and income, providing you with more accurate budgets and insight as to how financially healthy your winery is at all times.

Prevent Costly Mistakes

Bookkeeping mistakes, even those that may seem minor, can have a large impact on your business. These mistakes can result in lost income, missed opportunities to save money, or even fines. A professional bookkeeper can catch many of these mistakes and correct them before it is too late.

Your bookkeeper can prevent other mistakes as well. They will ensure that your bills and incoming invoices are paid promptly, which helps you avoid late fees and keeping your professional relationships intact. They will also carefully watch your budget, so you do not over-spend. A good bookkeeper will also make certain that all clients are invoiced correctly and keep on top of unpaid invoices.

Reduce Overhead

Finally, by hiring a bookkeeper, you may be able to reduce some of your overhead operating costs. These include costs such as:

Office supplies
Office furniture
Technology-related costs
Other expenses that are necessary to operate a business regardless of what industry that business is in.

According to Intuit, overhead costs should ideally make up less than 35% of your total costs. Bookkeepers typically have an understanding of what a reasonable cost is for these products and services. They may be able to identify areas where you are overspending and move you to a different vendor or renegotiate your contract. This is one area you may not have ever found the time to focus on, but a dedicated bookkeeper can.

Turn to Protea Financial to Get Help with Cutting Your Winery’s Expenses

Interested in learning more about how a winery bookkeeper can help you reduce your operating costs? Contact us here at Protea Financial today with your questions. We will gladly explain to you how we can help cut your costs and give you back time to focus on what you do best.

Taking Care of Business: Hiring the Right Accounting Bookkeeping Service

by Zane Stevens | Aug 5, 2021 | Accounting, Bookkeeping, Outsourced Accounting | 0 comments

In this fast-paced world, keeping track of your company’s finances is a 24/7 job. That important balance between paying attention to the business aspects and the people aspect can easily get lost in the mix. Hiring the right staff will bridge the gap and make it easier for you to run your business. Depending on your business, you may need just an entry-level position or several positions with varying skill levels. This article will discuss the types of accounting bookkeeping service and support staff that can be found in the accounting industry.

Types of Recordkeeping Staff

As a business owner it can be overwhelming to do all the daily tasks on your own—recording sales, collecting the money, setting up lines of credit for return customers, depositing all the daily receipts, and making sure each day is properly closed out. If you just need someone to do the bookkeeping, it could make sense to hire a bookkeeper to ensure nothing is missed.

General Accounting Bookkeeper

General bookkeepers deal with the daily postings and financial transactions of a business, preparing invoices, posting payments, and keeping up with monthly bank reconciliations. They will have a basic understanding of double-entry accounting and will be familiar with financial software like QuickBooks or Xero.

Full-charge Bookkeeper

Full-charge bookkeepers have many of the same responsibilities as general bookkeepers. In addition, they also prepare financial statements and often handle running payrolls. They have taken a few accounting classes, so will have a higher level of experience.

Certified Bookkeeper

This type of accounting bookkeeper handles everything a general and full-charge bookkeeper do and a whole lot more. Certified bookkeepers have at least two years of experience working in the accounting bookkeeper service field and must pass a four-part exam. They handle running payrolls, quarterly tax payments, and closing out the books.

An accounting bookkeeping service is an excellent choice for helping with your company’s basic operations by ensuring the accuracy of your data. It is impossible to make sound financial decisions without a solid foundation of accuracy.

Types of Accounting Bookkeeping Service and Analytical Staff

What if you want to grow your operations or closely track your costs to save money to expand your products or services. Hiring an accountant who can offer strategic financial advice would help you better understand the story behind the data.

Junior Accountant or Entry-Level Accountant

The duties of a junior accountant depend on the abilities of the candidate. Most entry-level positions require a bachelor’s degree in accounting, finance, or a related field. Junior accountants choose accounting as a career because they have a healthy interest in how businesses run. They are analytical, have an elevated level of attention to detail, and strong abilities in being organized.

Junior accountants support upper management and senior accountants while supplying important services within your company. Their duties include everything that a bookkeeper does. They also prepare financial statements, prepare budgets, and maintain the accounting records.

Staff Accountant or Financial Analyst

Although financial analysts and accountants are separate disciplines, they have some important commonalities. Both specialties require a bachelor’s degree and have had some experience working with upper management to address the unique needs of a business. Although accountants and financial analysts love numbers and analytics, they focus on different key areas of managing the business.

Staff Accountant

Accountants are interested in the financial accuracy, taxes, and day-to-day operations of a business. They look at the company’s past to ensure that the company’s present is in good standing. Many of the reports that accountants produce, including the raw data, are used by financial analysts to make forecasts on how to best use a company’s assets.

Financial Analyst

Financial analysts look at past and current trends to make forecasts for the future. Whereas accountants look at the details, financial analysts look at the overall picture. They work with accountants to make decisions about which projects will yield the highest rate of return for the company using macroeconomic or microeconomic approaches.

Senior Staff Accountants

Senior accountants are seasoned professionals who a have strong understanding of all the accounting cycles and how they relate to each other. Many have a master’s degree and may even be certified. They have advanced knowledge in finance, cost accounting, taxation, budgeting, and analytics.

Because of their experience and knowledge, senior accountants are poised to help you with tax planning, tax filing, responding to audit requests, and staying on top of compliance.

Conclusion

Whether you need a accounting bookkeeper service to run the day-to-day operations or an experienced accountant, choosing the right staff will pay dividends in the years to come. Regardless of who you hire, you want someone who is detail oriented, has effective communication skills, is highly organized, has excellent computer skills, and understands Generally Accepted Accounting Principles (GAAP).

Outsourcing Accounting Services: Increase Your Bottom Line

by Zane Stevens | Jun 24, 2021 | Accounting, Outsourced Accounting | 0 comments

Outsourcing accounting services is a great way to save time, money, and your sanity. It can be difficult for many business owners to find the time or expertise necessary to keep up with all the paperwork that comes from running a successful company. We will examine how outsourcing accounting services can help you improve your efficiency and your bottom line.

You will have access to a team of experts

Accounting is one of the most difficult professions to master. Most accountants have many years of education, training, and experience. Many accountants work toward one or multiple certifications—Chartered Accountant, Certified Public Accountant, Certified Managerial Accountant, Enrolled Agent, or others.

Each certification is useful depending on whether the accountant wants to focus on financial accounting, taxes, auditing, or general business. Each certification has rigorous requirements that require many hours of study, experience, and testing.

In most cases, the requirements for certification are overkill for what is used in daily business life. So, if your accountant is not certified, it will likely not have an impact on their ability to have a drastic effect on the long-term success of your company. What it reveals is how serious the accounting industry is about producing talented accountants.

Also, accountants work with many businesses daily. By outsourcing your accounting, you gain the benefit of avoiding the mistakes that other businesses have made that your accountant has already solved. Accounting can be frustrating, so your accountant has had many wins in their career. This shows that your accountant has the moxie and resolve to ensure the continued success of your business.

You can avoid the headache of hiring and training employees

For most small and medium-sized businesses, hiring and training a quality accounting team can be an expensive and resource-intensive process. Even retaining the best talent can be a headache. Because the needs of a business can change throughout the year, it is easy to adjust an accounting team through the outsourcing company.

By outsourcing your accounting, you are passing on headaches that would otherwise be yours and instead hand them off to an expert who specializes in accounting. This frees your time up to focus on core business functions that add value to your company. You are free to do what you are best at… while they do what they are best at—adding to your bottom line.

You will save money and time

They say that a penny saved is a penny earned. First, you will save on the large amount of money that goes into office facilities, software, office machines, and supplies. As briefly mentioned, not only will you bypass the headache of maintaining a staff, but you will also save on the salaries and payroll taxes of in-house accountants. By outsourcing, you will have access to the latest technologies and innovations without additional costs.

They will find money you did not even know you had. Did you know that when the coronavirus hit, congress passed several laws aimed at helping businesses survive the anticipated economic impact? If you did not know, your accountant did and already had several strategies on how to help you benefit.

Additionally, the tax laws change every year. By outsourcing your accounting, you will partner with accountants who are on top of these changes and help you get access to help and tax deductions that will enable you to thrive—especially during difficult times.

You will be up to date on your financial position

For simplicity, many small- and medium-sized businesses choose the cash basis of accounting. In essence, revenues are recognized when cash is received; expenses are recognized when cash is paid out. Although it saves time, you lose out on what your true financial position is. For example, if you prepaid some expenses—such as rent or insurance—you may have more cash available than you think you do.

An outsourced accounting team is likely to prefer to use accrual accounting because it gives insights into the financial health of a company. Accrual accounting recognizes and records transactions when they occur. For example, you buy a $20,000 distribution truck to be used for the next 10 years. Under the cash basis you expense $20,000 when purchased. This makes one year look bad and all the other years look good. Under the accrual basis, you would depreciate it as it is being used—over the next 120 months. As you are using the asset, you are likely generating a profit from using the asset.

An outsourced accounting team can create accurate and timely financial reports so you can predict future revenues and costs. This will help you make well-informed decisions for the long-term success of your business. With the accrual method all sorts of metrics are now available to tell you exactly how you are doing. Where performance is measured, performance improves.

Outsourcing your accounting services to a team of experts is a wise investment for your business. The right partner can help you increase your bottom line and avoid the headache of hiring employees. They will give you guidance on how to best manage risk in each area of business so that nothing falls through the cracks. You will be able to save time by not having to worry about staying up to date with technology and billing cycles.

Having an expert staff who has years of experience in the industry who is always looking out for ways to improve efficiency and reduce cost is one of the best ways to give your business a competitive edge. Having access to a team of professionals dedicated solely to handling all matters related to finance and taxes on behalf of your organization means you are better positioned not only from a risk management standpoint but also having funds available for other pressing needs within your company.

How to understand your balance sheet: A beginner’s guide

by Zane Stevens | Jun 3, 2021 | Accounting, Bookkeeping, Business, Financial Services, Outsourced Accounting | 0 comments

A balance sheet is a financial statement that provides an overview of the company’s assets, liabilities, and equity at a specific point in time. It is important to know what each one means in order to understand how well you’re doing. It can be difficult to understand all the information on this document, but there are ways to break it down into more manageable pieces.

What is a balance sheet?

The balance sheet is a financial statement that provides information about the assets, liabilities, and equity of a company.

The first section of the balance sheet lists the assets on hand. Assets are anything that can be turned into cash. Assets include cash, accounts receivable (money owed to you), inventory (goods waiting to be sold), and prepaid expenses (e.g., insurance that is paid annually in advance). Assets are usually broken up into short-term (less than one year) and long-term (one year and longer)

The second part lists liabilities, which are things you owe money for. Liabilities include loans payable or due for goods purchased on credit. Like assets, liabilities are usually broken up into short-term and long-term.

Finally, equity is calculated by subtracting what you owe from what you own. This is also referred to as net worth or the net value of the business.

The importance of the balance sheet

Balance sheets are a snapshot of what a company’s assets, liabilities, and equity look like at any given point in time. A balance sheet is a tool that can be used to find out if a company has enough money to cover its obligations and stay afloat or enough assets to cover its long term obligations.

The balance sheet can also be used to determine how a company is financing its operations. A company that is generating enough net income will have higher retained earnings from one year to the next. A company that is financed through debt will have an increase in long-term liabilities year-over-year.

How to read a balance sheet

Below is an example of a balance sheet.

We already explained assets, liabilities, and stockholder’s equity. The balance sheet must always “balance” because assets equal liabilities plus equity (known as the accounting equation). Understanding this equation helps you understand a company’s position. If the company has more liabilities than assets, then it will have negative equity, which is a potential major red flag especially with mature businesses.

Investors and creditors like to determine a company’s financial health using something called ratio analysis. To determine how liquid a company is, divide current assets by current liabilities. In the example above, 67,500 / 34,200 = 1.92. Whether that is good or bad depends on the industry. In general, anything near or over 2.00 is acceptable.

Other performance indicators include solvency ratios (also called financial leverage ratios), profitability ratios, efficiency ratios, and coverage ratios. Corporations also have market prospect ratios which are used to predict performance, which is imperative when valuing a company’s stock price.

How to use information from the balance sheet to improve your finances

Did you know the information found on a balance sheet can also be used to measure your company’s vulnerability to risk? A complete balance sheet includes key pieces of information like cash on hand, accounts receivable and inventory. By analyzing these numbers, you will be able to see where your business is strong or weak in relation to other companies in similar industries. If there are any areas for improvement (i.e., too much debt), it will allow you time to prepare so that when the unexpected happens.

If you want to take control of your finances and improve them, the balance sheet is a good place to start. Understanding what it includes and how to read one will provide insight into where you can make changes in order to get more money for yourself or avoid unnecessary expenses that are taking too much from your paycheck.

The best way to use this information is by comparing two different months side-by-side on paper so that you have everything at hand. Once you have done this, focus on adjusting only those areas which seem most important – like lowering debt payments or reducing inventory on hand – and see if there is an impact in your bottom line!

The balance sheet is a powerful financial tool that can be used to improve your finances. It’s important for you to understand how the information on the balance sheet works and what it means in order to make informed decisions about improving your money management skills. Let us know if we can help! Contact our team of experts today and let them show you how they have helped others grow their wealth with remarkably simple math.

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About Zane Stevens

Zane Stevens is the Director of Protea Financial. Protea provides services to take over the burdens and responsibilities of finding, managing, and training an accountant or bookkeeper for businesses and free up proprietors’ time, so they can focus on building their businesses.