Trial Balance: What It Is, How to Prepare One, and Why It Matters
A trial balance is a listing of all general ledger accounts and their debit or credit balances. Learn how to prepare one, the three types, and common errors.
#financial-statements
Financial Statements
Understand and prepare balance sheets, income statements, and cash flow reports
Unearned Revenue: What It Is, How to Record It, and Why It Matters
Learn what unearned revenue is, why it's classified as a liability, how to record it with journal entries, real-world examples from SaaS to gift cards, tax implications, and best practices for managing deferred revenue.
Bad Debt Expense: What It Is, How to Calculate It, and How to Record It
Learn what bad debt expense is, how to calculate it using the direct write-off and allowance methods, and how to record it properly. Includes journal entries, formulas, aging schedules, and tips for managing uncollectible accounts.
Cost of Goods Sold (COGS): What It Is, How to Calculate It, and Why It Matters for Your Business
Learn what cost of goods sold (COGS) is, how to calculate it using the COGS formula, and why it matters for profitability and taxes. Includes inventory valuation methods, common mistakes, and tips to reduce COGS for small businesses.
Deferred Revenue: What It Is, How to Record It, and Why It Matters
Learn what deferred revenue is, why it's classified as a liability, and how to record it with proper journal entries. Covers ASC 606 revenue recognition rules, common mistakes, and practical tips for SaaS and subscription businesses.
Retained Earnings: What They Are, How to Calculate Them, and Why They Matter
Learn what retained earnings are, how to calculate them using the retained earnings formula, and why they matter for your small business. Includes step-by-step examples, common mistakes, and tips for managing retained profits effectively.
Double-Entry Accounting: The Complete Guide for Small Business Owners
Learn how double-entry accounting works, why every transaction needs two entries, and how this 500-year-old system helps small businesses maintain accurate financial records. Includes practical examples, common mistakes, and tips for getting started.
EBITDA: What It Is, How to Calculate It, and Why Your Business Needs It
EBITDA shows earnings before interest, taxes, depreciation, and amortization. See how to calculate it and why it matters for your small business.