Business Planning

Should Small Business Use Cash or Accrual Accounting?

Cash vs Accrual Accounting: Small Business Edition

Should small businesses use cash or accrual accounting?

Well, that depends, as every small business has its specific needs and goals. You’ll ultimately need to choose an accounting method, cash vs accrual. 

Regardless of whether you choose accrual vs cash basis accounting, you’ll be recording sales and expenditures. The difference is in how each model processes this information. Your financial reporting method will determine at what point in the transaction process your account for a service being completed.

Deciding between cash or accrual accounting systems will come down to how you want your company to operate. To help, we’ve made this cash vs accrual accounting small business guide, to help you make an informed choice.

Business Planning

Questions to Ask Your Business Accountant | L3 Funding

What are the Best Questions to Ask an Accountant? 

As a new business owner, you may be tempted to relegate your accounting tasks to a generic online accounting tool. However, without proper consultation with a Certified Public Accountant (CPA), you may find yourself navigating through a challenging series of questions with the IRS.

Once you consult a professional accountant, make sure that you understand what services they can provide for your new enterprise. Learning the right questions to ask a CPA can save you a major headache down the road.

There are many good questions to ask a tax accountant. With that in mind, we’ve broken down some general queries as well as questions to ask your accountant when starting a business.

Business Loans

Debt Financing vs Equity Financing | L3 Funding

Debt vs Equity Financing: What’s Best for Your Business? 

As an entrepreneur looking to start up a new venture, one of the most pressing questions is how you’re going to finance the business. Usually, you’ll be choosing between debt and equity financing.

Understanding the difference between debt financing vs equity financing is key to your endeavor’s success. The basic debt fundraising definition generally refers to taking out a loan that has preset interest and timed payment intervals. Equity financing simply means giving out ownership of your company in exchange for cash flow. 

Choosing debt vs equity financing can be an ordeal in itself. There are several factors that you need to consider. Before solidifying your choice between the many debt equity financing options, you need to analyze your business’s current stage, expendable income, capital structure, and the economy as a whole. 

In this article, we’ll delve into the pros and cons of equity financing and help you determine which is right for your new venture.

Business Planning

Small Business Operations – What Does it Mean?

Everything You Need to Know About Small Business Operations 

Business operations are key to finding your rhythm as a start-up or small business. From production to managing payroll, these everyday tasks can seem daunting for every business owner. 

An operations plan is helpful for investors, but it’s also helpful for you and your employees. Having a solid foundation of operating practices can make running a company easier and ensure business continuity in case of unexpected events. 

What is “business operations” and why does your company need it? We take a look at what setting up your company for successful operation entails. 

Business Planning

Gross Revenue Vs Net Revenue – What’s the Difference?

Gross Revenue Vs Net Revenue Accounting for Small Businesses 

All earned income in your small business falls under gross revenue and net revenue, but treating them as the same could land your business in the red financially. 

Gross vs net: Knowing the difference can give you an understanding of how well your business can generate revenue. The two also have income tax repercussions if handled incorrectly. 

We take a look at the importance of recognizing and reporting revenue clearly according to these accounting categories. 

Business Planning

Venmo for Business – How Can it Work for Me?

Venmo for Business: What You Need to Know 

Venmo is considered one of the most social-friendly payments splitting platforms. It was started for that very reason—two friends were looking for an easy way to pay each other back, and its positioning on social media has seen it become one of the most popular peer-to-peer payment apps. This large user base makes it a platform that small businesses should not ignore. 

Is it a good option for you? This article unpacks everything you need to know. 

Business Planning

Small Business Management Help – How to Be Successful

Small Business Management: Tips & Tricks to Help You Succeed

Starting a small business is always an exciting but nerve-wracking experience for most entrepreneurs. That’s because managing it effectively takes a lot of hard work, risk-taking, and sound business skills. 

Not every owner makes it through the crucial first years, but with the right business management help, even first-timers have a fighting chance.

That’s why today’s article focuses entirely on how to manage a small business. We’ll discuss why it’s crucial and then delve into various business management tips and tricks to help you grow your enterprise successfully.