Buying another company can help small business owners grow quickly, reach new customers, and improve how they operate. However, it also brings challenges like financial pressure, difficulties in combining the two businesses, and differences in workplace culture.  It’s important to understand how to buy a business to handle these issues well and this article can help you do just that. This guide is also related to our articles on understanding gross vs. net profit, cash vs. accrual accounting, and how to read a cash flow statement. This list includes: Business acquisition process How to b ..read more

Introduction CFO (Chief Financial Officer) reports are in-depth reports that show a variety of trends, metrics, and ratios that forecast and explain the financial performance of a company. This guide explains some of the basic CFO reports that a small business owner would use to understand their financial performance.   This guide is also related to our articles on what is a virtual CFO, how to read a balance sheet, and how to calculate burn rate. Here’s what we’ll cover: CFO report example CFO reporting structure CFO ratio examples CFO meaning Let’s dive in. What is a CFO? Here’s ..read more

Introduction Cash flow and revenue can appear similar, but they’re quite different. Revenue represents the total income earned, cash flow measures the net amount of cash being transferred in and out of a business. This guide should help you understand the differences. It’s also related to our articles on understanding gross vs. net profit, operating income vs ebitda, and how to read a cash flow statement. This list includes: Cash flow vs. revenue Cash flow vs. profit Revenue recognition criteria Operating vs. non-operating revenue Direct and indirect cash flow Let’s dive in! Definition of re ..read more

Introduction Amortization, in financial and accounting terms, involves spreading payments over multiple periods for loans or allocating the cost of intangible assets over their useful lives. This article will explain the basic terms and show calculations and examples of different kinds of amortization. This guide is also related to our articles on understanding journal entries in accounting, understanding prepaid expenses, and how to read a balance sheet. This list includes: Amortization of loans Amortization of intangible assets Amortization schedule example Difference between amortization a ..read more

Introduction A price increase letter is a note a business sends to its customers to tell them the prices of products or services are going up. It explains why the business needs to charge more because of changes inside the company or in the wider market. This guide explains why you should review prices regularly, and how to craft a price increase letter. This guide is also related to our articles business budgeting, back office services, and understanding gross vs. net profit. This list includes: Price increase notice Price increase email Price increase announcement Price increase notice temp ..read more

Introduction Accounts payable is what your business owes, but hasn’t yet paid. You receive a bill from your lawyer, independent contractor, or software company – that’s accounts payable. This article will help you understand all the important basics of accounts payable. This guide is also related to our articles on understanding prepaid expenses, bank reconciliation example: step by step, and double-entry accounting: the basics. This list includes: Accounts payable process Invoice processing automation Accounts payable vs accounts receivable Cash conversion cycle in accounts payable Accounts ..read more

While both accountants and CPAs (Certified Public Accountants) work with financial statements, the distinction lies in a CPA’s licensure, which grants higher responsibilities. This distinction not only affects the scope of work they can perform but also impacts their authority and the trust placed in their financial assessments. This guide will walk you through the main differences and similarities between accountants and CPAs. This guide is also related to our articles on bookkeeping vs. accounting, why accounting is important, and how to avoid accounting errors. This article covers: account ..read more

A virtual CFO (Chief Financial Officer) provides expert financial advice and services remotely, offering a cost-effective solution for small businesses needing strategic financial guidance without the overhead of a full-time CFO. This article will explore how a virtual CFO can transform your business’s financial health, the services they offer, and how to decide if it’s the right choice for your business. This guide is also related to our articles on 19 top fractional cfo, accountant vs cpa: what’s the difference and how to value a small business. This list includes: What is a virtual CFO? Be ..read more

Credit memos are documents that lower the amount a customer owes you. They can be created for many reasons, including customer overpayment, damaged goods, pricing errors, promotional discounts, early payment discounts, and service failures. Credit memos are an important factor in managing your Accounts Receivable and, more importantly, your relationships with customers. If your customer billing is wrong, not only are your financial statements incorrect, but you’re also jeopardizing your customer relationships. This article covers the basics of credit memos, how to issue and record them, and be ..read more

A year-end bookkeeping checklist is a tool for small business owners to ensure their financial records are complete and accurate before the year concludes.  In this article, we’re going to walk you through each step of the year-end bookkeeping process.  This guide is also related to our articles on common accounting errors and how to avoid them, how to read a balance sheet, and how to hire a virtual bookkeeper. Here’s what we’ll cover: year end bookkeeping tasks year end closing process year-end accounting entries year end closing entries Ready to dive in and get your finances in t ..read more