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Accounting

Balance sheet

 

Accountant Balance sheet expert comptable toulonA balance sheet is a quick picture of the financial condition of a business at a specific period in time. The activities of a business fall into two separate groups that are reported by an accountant. They are profit-making activities, which includes sales and expenses. This can also be referred to as operating activities. There are also financing and investing activities that include securing money from debt and equity sources of capital, returning capital to these sources, making distributions from profit to the owners, making investments in assets and eventually disposing of the assets.

Profit making activities are reported in the income statement.

financing and investing activities are found in the statement of cash flows. In other words, two different financial statements are prepared for the two different types of transactions. The statement of cash flows also reports the cash increase or decrease from profit during the year as opposed to the amount of profit that is reported in the income statement.

The balance sheet is different from the income and cash flow statements which report, as it says, income of cash and outgoing cash. The balance sheet represents the balances, or amounts, or a company’s assets, liabilities and owners’ equity at an instant in time. The word balance has different meanings at different times.

As it’s used in the term balance sheet, it refers to the balance of the two opposite sides of a business, total assets on one side and total liabilities on the other. However, the balance of an account, such as the asset, liability, revenue and expense accounts, refers to the amount in the account after recording increases and decreases in the account, just like the balance in your checking account. Accountants can prepare a balance sheet any time that a manager requests it. But they’re generally prepared at the end of each month, quarter and year. It’s always prepared at the close of business on the last day of the profit period.

This post was kindly prepared by Expert Comptable Toulon

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Accounting

Finding A Good Accountant : how ?

Expert Comptable ToursFinding a good accountant does not always end up being a simple task. There are so many accountants that seem to appear every year, it is hard to know who to choose to put in charge of your finances. Finding a accountant is a very serious task that is never taken lightly, especially since it involves your business. Here are two simple steps of how to choose a accountant that you can trust with your businesses finances.

The first thing you do to find a good accountant, is to build a list of referrals form credible sources. To find resources for these referrals may seem like a daunting task at first, however, it is simpler to accomplish this goal then what you think. You can go to such resources such as your local bank, any type of financial planners that you may have, and you can even talk to your current insurance agent about people they know about to be your accountant. If you have any contacts or affiliations with other businesses, then you can ask them for accountant referrals as well. These are all trusted resources that can provide you with some good leads on who you can trust to be your accountant. Finding accountant candidates through trusted resources such as your businesses bank, is one of the best ways to find an accountant. Most professional referrals like this mean that the accountant has a good reputation.

Once you have your accountant referrals, you then want to contact them and exchange information. Feel free to tell the accountant about your business as well as your accounting needs and expectations, explains Expert Comptable Tours . While you give the accountant your information, also ask for theirs. Some key things you want to find out is if the accountant can handle a business in your industry and your size, as well as finding out all of the services they offer. Do not be afraid to look at their portfolio and get estimates for their services. Be sure you know what services the fees cover. You never want to select an accountant whose fees are to high for what you can afford. Make sure that you can maintain a good line of communication and determine if they are helpful and informative. The accountant who offers the most detail and takes the most time to not only tell you about the services they can offer you, but also listens to your concerns, is usually the type of accountant that you are looking for.

After gathering all of the information about the accountants, then make the decision of who is the right accountant for you. Remember that you will be having a long business relationship with your accountant, so you want to select an accountant that you feel you can build a good rapport with as well as someone who will have you and your businesses best interest in mind.

By following these simple steps, you can have confidence in finding an accountant who will work hard to help you direct your company into a positive direction for financial growth and expansion.