business knowledge

6 Essential Accounting Terms for Small Businesses

6 Essential Accounting Terms for Small Businesses

Hiring an accountant is widely considered best practice for small business owners.  But delegating financial analysis and reporting doesn’t mean completely checking out of the process each month or quarter. On the contrary, it’s recommended that business owners work closely with their accountants throughout the year to better understand their financial position, and make smart plans for future growth. Want to increase your accounting knowledge so you can have more informed, insightful discussions with your account this quarter?

Start right now, with this list of 6 essential accounting terms for small business owners.

Benefits of Money Mindfulness

Benefits of Money Mindfulness

Money mindfulness means being intentional and present with how you spend your money. It means not mindlessly handing over your bank card without paying attention to the cost of items or shopping online with little thought to whether you can afford to do so. Mindfulness can lead to considering whether you need to spend money or if there are ways you could spend a little less.

Here are two main benefits of money mindfulness.

Creating A Financial Plan

Creating A Financial Plan

Depending on the current state of your finances, financial freedom might seem a long way away. For many people, financial freedom—when you don’t have to worry about how to pay the bills and your money is invested and making money for you—is a far off dream. What they don’t understand is how close financial planning can get them to that dream.

Financial planning isn’t all staring at ledgers and creating spreadsheets, although if you like that sort of thing you’re welcome to do it. It’s about creating a list of your financial goals and figuring out how to get yourself there.

Here are some steps to take to get started on your financial plan.

What Is Financial Planning?

What Is Financial Planning?

To many people, financial planning sounds like something for the very rich. The wealthiest people take their piles of money to someone who tells them where to invest it so they can make even more money. The rest of us just focus on saving what we can while paying off debt and hoping we don’t lose our jobs before we’re financially stable.

In fact, financial planning is about having long-term and short-term financial goals and developing a plan to achieve those goals. It’s about knowing how to make the most of your money – whether that’s putting a little extra into savings one month or paying off a bit of debt more quickly.

It’s about making smart financial decisions so your money is working for you as efficiently as possible while reducing your monetary stress. It’s also about becoming financially stable more quickly, so you can survive if any major expenditures come along.

In short, financial planning is something everyone can benefit from.

Getting The Work–Life Balance Right

Getting The Work–Life Balance Right

As a small business owner it’s hard to juggle your work and outside responsibilities. It’s important to run your business effectively and still have a life outside the office.

You need a good balance between work and play for your health and well-being. Small business owners often fall into the trap of working too hard, ending up exhausted from the constant work demands associated with self-employment.