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Most business owners don’t struggle with earning money they struggle with seeing it clearly. Revenue, profit, and your tax position are the three numbers that change everything when you understand them. If you want to start tracking your numbers properly, Xero have a special offer to help you get started. Visit xero.com/accountantshe to get started. #Ad #MTD @Xero
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Beginner financial accounting students often struggle with service revenue journal entries because cash doesn’t necessarily mean revenue should be recognized. #accounting #accountingstudent #accountingtiktok #accountingmajor
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Replying to @Cally let’s talk about cost of goods sold (sorry this one’s been sitting in drafts a while) #accounting #accountantsoftiktok #costofgoodssold #accrualaccounting #accrualbasis
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Why Isn’t Profit the Same as Cash Flow? Under the Accrual Method of accounting, revenue is recorded when it’s earned and expenses are recorded when they’re incurred, not necessarily when cash changes hands. That means Boutique Couture could record a sale before the customer pays, or record an expense before paying the bill. Some expenses, like depreciation, don’t involve any cash leaving the business at all. So even though the Income Statement shows $60,000 in Net Profit, that doesn’t necessaril
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