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Accounting concepts all business owners should know about, by small business accountants in Sydney

Accounting is an important ordeal for anyone that has to deal with money on a daily basis, especially if you are a small business owner. Our small business accountants in Sydney will tell you which accounting concepts we think all business owners should know about.

Some of the basic accounting concepts we should all know include:

• Understanding the accounting cycle, which essentially means that every event or transaction that you make needs to be documented
• Being able to understand the three most important financial statements for your business: income statement, cash flow statement and a balance sheet
• Your income statement will show the amount of profit a business will during a specific period of time
• Balance sheets are important not only to businesses but also to personal accounting as it is a report based off of your assets, liabilities, shareholder equity and owners equity at a specific point in time
• Your cash flow statement shows how your money changes over a specific period of time, these are normally derived from your balance sheet and income statement. This also includes, expenses, income and investing activities during this time

Small business accounting is the most difficult when you first start a business and you should always seek professional help as it will be more beneficial in the long run.

Contact our small business accountants in Sydney and we can take you on a learning process while fixing your accounts.