Business Discussion Board - 3

Business Discussion Board - 3 - Taxes o All financial...

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Accounting is important in business to provide a general overview of how the business is doing financially. Understanding accounting greatly helps the business owner make profitable decisions for the company. 1. Profit and Loss o Accounting allows the business owner to see where profit is being made and where losses are occurring, helping him know where improvements need to be made. Cash Flow o Through accounting, the business owner can see where money is being spent; this allows for better understanding and budgeting of money. Balance Sheet o Seeing if profits are large enough to overcome expenses is tantamount in business; this information defines the success of the operation. Financial Decisions o With accounting, the business owner can make financial decisions that will be most lucrative in the long run.
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Unformatted text preview: Taxes o All financial records are kept in order thanks to accounting; this allows taxes to be executed easily and precisely at the end of the year. The quarter of Canadian small business owners represented in the survey may have simply been new and young businesses and business owners who are unfamiliar with accounting and business needs. Without this knowledge of accounting, however, a business will find it difficult to grow and have a better understanding of its day-to-day activities. While reading the article, I have realized that regardless of a business’ product or service, a truly successful business owner will have an understanding accounting....
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