Carpon
Valued Contributor
As a business individual you must be able to ascertain the financial status of your business set up. A lot of times the failure to properly record business activities and transactions lead to the inability of business owners to declare whether their business is running at a profit or loss. That is a very detrimental habit and it does not have any effect taking your business further but rather backwards.
It is from a profit and loss account that you know whether you are making profit or loss in the business you are running.
This helps you in deciding your next line of action. I have seen a lot of businesses which were at first crashing but the owner was able to keep it because of proper record keeping and the ability to also channel the little profit properly till the business was back up again.
In a business profit is the amount of money realised when the capital used to start the business year has been deducted. While loss is the amount that is missing after the end of a business year from the capital used to start the year.
From the ability to record well, your business transactions you determine the status of your business and take proper steps to help keep your business alive.
At some point it may be relocating your business from one place to the other. Though this will not work in every case but at times the location of your business goes a long way to determine whether it will be ran at a profit or loss status.
So therefore as a business person, you must be able to properly determine the status of your profit or loss so that you don't end up loosing from what you were expecting to give you profit. What will you use to describe your business right now?
It is from a profit and loss account that you know whether you are making profit or loss in the business you are running.
This helps you in deciding your next line of action. I have seen a lot of businesses which were at first crashing but the owner was able to keep it because of proper record keeping and the ability to also channel the little profit properly till the business was back up again.
In a business profit is the amount of money realised when the capital used to start the business year has been deducted. While loss is the amount that is missing after the end of a business year from the capital used to start the year.
From the ability to record well, your business transactions you determine the status of your business and take proper steps to help keep your business alive.
At some point it may be relocating your business from one place to the other. Though this will not work in every case but at times the location of your business goes a long way to determine whether it will be ran at a profit or loss status.
So therefore as a business person, you must be able to properly determine the status of your profit or loss so that you don't end up loosing from what you were expecting to give you profit. What will you use to describe your business right now?
