Category: Accounting

Most financial statements include a balance sheet, an income statement, and a statement of cash flows. In this blog I will discuss the balance sheet. Winnipeg, Manitoba The balance sheet shows a company’s assets, liabilities and equity at a specific point in time, usually at the year-end or at a month-end. All the numbers on…… Continue reading Understanding the Balance Sheet

Importance of Financial Statements Most businesses must file financial statements to satisfy lenders and to file annual tax returns. However, an understanding of financial statements also provides business owners with the ability to determine the financial state of their business and how it is performing. Financial statements are a valuable management tool. They provide a…… Continue reading Understanding Financial Statements

The two major components of a financial statement are the balance sheet and the income statement. The balance sheet shows a company’s financial position at a set point in time, usually at a year end or month end. It lists the company’s assets, or what it owns, and its liabilities, or what it owes. It…… Continue reading Balance Sheet vs Income Statement

Bookkeeping Although the terms bookkeeping and accounting are often used interchangeably, bookkeeping is generally referred to as the basic recording, often routinely, of initial daily transactions into some form of ledger.  Transactions are entered into ledgers such as a general ledger, cash ledger, sales ledger, purchase ledger, or payroll ledger. True bookkeepers will not take…… Continue reading Accounting vs Bookkeeping