Having trouble achieving profit margins? Mosey on over to your income statement! Perhaps your expenses are gobbling up revenues. They provide the information you need to thrive. However, these statements satisfy far greater than IRS requirements. Many would assume the major benefit to clean, accurate and current financial statements is relief while filing taxes and enduring audits. Keep your accounts/books clean, accurate, and current to obtain financial clarity. Now I could fill this post with other important aspects of bookkeeping, but for the sake of time (and sanity) I’ll leave this section with the point. The Income Statement displays your revenues, costs, expenses, and profit for a specific period of time.Īnd the Statement of Cash Flows gives you an autopsy of cash going in and out of your business, also for a specified period of time. The Balance Sheet gives you a snapshot of what you own (assets), who you owe (liabilities) and what’s left over (equities) for a specific point in time. The big 3 financial statements are the Balance Sheet, Income Statement, and Statement of Cash Flows. Accounts are then prepared into financial statements or reports that help tell your firm’s financial story. The Chart of Accounts (COA) lists the names and codes of each account and is used as a guide to keep those transactions organized. Bookkeeping Basics for Architects What is Bookkeeping?īookkeeping is the classifying, recording, and reconciling of financial transactions. It’s a wonderful companion on the journey to passionate and profitable design. With that being said, allow me to share my bookkeeping basics for architects. To make well informed decisions you need to have financial clarity.įinancial clarity is achieved through great bookkeeping. To have a profitable business you must make well informed business decisions. To do what you love, you must have a profitable business. There’s absolutely nothing creative about it and yet it is crucial to the growth of all design firms. These are the sentiments of many firms in the architecture community. “Pencils I know, scales and tracing paper I know! Deciphering the client’s needs and wants? Bring it on! But bookkeeping?!?! What manner of evil is this?” “I went to school for architecture, not business!” It’s confusing, boring, and I don’t want to do it!” Helping Firms Embrace the Language of Business
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |