Startup Costs

So What’s Accrual Accounting and Why Does it Matter?

So you make a sale. When you deliver the goods, you record it as a sale. If the customer didn’t pay you immediately, you record the accrued amount as Accounts Receivable. You order some goods. When you receive them, you don’t pay for them. Instead, you record the accrued amount as Accounts Payable. At the...

If You’re Planning a New Business, Budget Your Startup Costs

There’s a lot of potential confusion about startup costs. You tend to jump right into one of those accounting vocabulary problems that often trip people up, because they want to make things mean what they ought to mean, instead of what standard accounting and financial analysis make them mean. Not a startup? Go on. Jump...

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