Net Income The Profit of a Business After Deducting Expenses

The net income is very important in that it is a central line item to all three financial statements. While it is arrived at through the income statement, the net profit is also used in both the balance sheet and the cash flow statement. Net income is the amount of accounting profit a company […]

What Are Assets in Accounting?

Operating assets are necessary assets in the daily operation of a business. They are retained and expected to continue benefiting the business beyond a year. Assets are important because they are what businesses use to operate and generate a profit. Get instant access to video lessons taught by experienced investment bankers. We and our […]

How to Open a Bank Account for Your LLC

Choose an accounting method (cash or accrual) and select accounting software to track income and expenses accurately. Sales, marketing, and accounting are all key administrative areas for new LLC owners (known as members). Accounting is especially important to preserve limited liability, which protects personal assets from being seized to satisfy debts and obligations of the […]