Yes, net income can absolutely be negative. If your business spends more than it earns during a certain period, you’ll end up with a negative
Most nonprofit teams we talk to ask the same question about bequests: “A donor told us we’re in their will. Do we record it now?”
“Accounting is the language of business.” The line is most often credited to Warren Buffett, and it explains something every business owner learns sooner or
Choosing the right accounting method matters more than many business owners realize. The wrong method can give you a misleading view of your profit, affect
The word “liability” makes a lot of business owners nervous. Many of them think it means a lawsuit or a major problem. But in accounting,
Most business owners read their profit and loss statement every month but rarely look at their balance sheet. That’s a mistake, because these two reports
Most people have heard of a financial audit, but not many know about a governance audit, even though it’s very important for many organizations. In
Most business owners have receipts scattered everywhere, in a drawer, a shoebox, or a photo roll. Then tax season arrives, and suddenly they’re trying to
If you sell physical products, inventory and cost of goods sold (COGS) are two of the most important numbers in your business. Many business owners
If you live, work, or run a business in Texas, you’ve probably asked yourself, “Does Texas have a state income tax?” The short answer is
