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A simple accounting spreadsheet for Microsoft Excel

Click here to download the spreadsheet Click here for YouTube video explaining how to use the spreadsheet. Want to learn more about Excel? My free YouTube course on Excel starts here. I designed the spreadsheet for a simple business that does 355 transactions a year or less. If you do more transactions, it shouldn’t be […]

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Looking for new software, partner?

For you accounting software buckaroos out there, I thought you might be interested in this here Infographic: i © 2012 Red Wing Software

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What are expenses?

A penny saved… Expenses are the cost of producing revenues. The largest expense for most companies is something called cost of goods sold.  This is the cost of buying or making the products that you sell.  For example, if you buy vitamins for $10/bottle and sell them for $30/bottle, then your cost of goods sold […]

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6th Edition of My Book is Here!

Interpreting and Analyzing Financial Statements focuses on helping you to understand how to use financial statements. While we wrote it specifically for an introductory college accounting course, anyone interested in learning how to read and analyze financial statements should benefit from reading it.

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Opportunity costs explained

When faced with a decision, opportunity costs are the costs of foregoing income from choosing one alternative instead of another. For example, suppose that you are trying to decide whether to Go out for lunch in a restaurant today or Bring lunch and eat it at your desk. Lunch costs $2.00 to make. Lunch in […]

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Why you need to know accounting: Tools for businesses

Many people think that they should just leave accounting to the accountants. After all, you can always hire an accountant. In fact, every person in business should know and understand accounting because it is the very language of business. Doing business without understanding accounting is like trying to fix your car without tools,  going to […]

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How to measure progress

What’s your goal? How can you measure progress towards meeting your goal? These are practical questions – not only does every business person need goals, but they also need to measure progress. I’ll give you a simple example. I’m blogging. My current goal is to get people to read my blog. I measure my performance […]

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Dividends explained

Dividends are distributions of profits to stockholders.  Corporations pay dividends; dividends paid by partnerships and sole proprietorships are called “withdrawals” or “drawings.” “Dividends” generally refer to cash dividends, cash payments to stockholders as a distribution of their profits.  After all, profits belong to the stockholders. “Stock dividends” actually refer to distributions of stock, when companies […]

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What are revenues?

Revenues are inflows earned from your customers. The key factor to understanding revenues is understanding that you must earn them.  To earn a revenue, you must provide whatever service or product it is that you provide to your customers.  For example, if you sell yoga equipment through an e-commerce site, then you will earn revenues as […]

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Do more with less

Perhaps the most powerful aspect of e-commerce is the ability of web entrepreneurs to create major business using almost no assets. Consider one of the great retailers of yesteryear: Sears Roebuck. To generate tremendous sales, Sears built a chain of department stores across the country, printed a fat catalog every year, and then mailed it […]

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