By definition, accounting practice involves the process of reporting the daily financial activity of a business entity. It is necessary for producing the required annual financial statements of a company. There are different accounting methods that businesses can use to record their financial statements.

Every country has their own accounting principles that companies must adhere to. In the US, the generally accepted accounting principles (GAAP) is issued by the FASB. It consists of accounting principles, procedures, and standards that companies must follow to prepare their financial statements.

There are two prominent accounting methods used by CPAs for their accounting practices. They are cash accounting and accrual accounting.

1. Cash Accounting

In this method of accounting, revenue and expenses are recorded only when they are received and paid. That is, a sale is only recorded when payment is received, and expenses are captured when bills are paid. Cash accounting method is the most used for small businesses.

2. Accrual Accounting

Under the accrual accounting, revenue and expenses are recorded once they are earned or consumed. You don’t have to wait until a payment is received or a bill is paid. It is mostly used by public organizations that want its financial statement audited.

Accrual accounting is considered by many to be the most theoretically correct accounting method. It requires an advanced knowledge of accounting.

Now, what’s the difference between these two accounting methods?

The main difference between cash accounting and accrual accounting is the time when revenue and expenses are recorded or captured. While accrual accounting focuses on anticipated revenue and expenses, cash accounting only recognises what’s on ground. None of these two methods of accounting truly shows the financial health of an organization. And both have their advantages and disadvantages.

The reason why the accrual method is considered the most theoretically correct is because it shows the overall earnings of a company. It levels out all revenue and expenses as they are generated.

Here are the advantages and disadvantages of both cash and accrual accounting methods.

Cash Accounting Methods

Advantages

It is simple to use and only account for cash paid or received

It doesn’t require greater knowledge of accounting

With cash accounting it is easier to track the cash flow of an organization.

Disadvantages

It doesn’t reflect the true financial health of an organization.

When a company is cash-rich, investors might assume the company is making profit while in reality it is making a loss due to large sums of account payables.

Accrual Accounting Method

Advantages

It shows a more accurate picture of the financial health of an organisation.

It shows the long-term profitability of a company

It includes both accounts payable and receivables

Disadvantages

It doesn’t track cash flow. And as a result, it doesn’t account for an organisation’s cash shortage in the short term.

It requires a greater knowledge of accounting

It is sometimes more complex to implement since it has to account for both unearned revenue and yet-to-be-paid expenses.

One of the solutions available in the market for those who need money quickly is a personal loan (or personal credit). This alternative guarantees a financial breath for those who need it, as it offers more straightforward access than other banking products/services — in addition to allowing good negotiations with better payment conditions. Some reasons why personal loans are collected are:

Increase Income

Personal loans are generally seen as a waste of money, but this is a very pessimistic and unfair perspective.

For example, imagine the condition of a micro-entrepreneur — even if he offers good products/services, has effective marketing, and can generate good sales, he cannot think about expanding the business without having enough money to make long-term investments. With the loan, he can acquire good equipment to increase his production and generate more jobs.

Do Emergency Work At Home.

Your property needs a good renovation, but you don’t have enough money to restore what you need? Do the math to find the amount needed. To do this, research the labor and materials needed in various stores. With the money in hand, say that you want to pay in cash and choose the establishment that offers the best discount.

Get Medical Treatment

If you or someone close to you needs urgent medical intervention and you can’t pay that bill, taking out a loan for that emergency can avoid situations such as discontinuing treatment. Thus, you pay the emergency in cash and keep the monthly fees to pay off the service provided.

Pay For The Gym

Parceling the gym may not be a good option when paying by credit card, as your limit is compromised. By hiring a semester or annual plan, you encourage going to the gym. Not to mention the discount that can be obtained.

Clear The Name On The Market

The accumulation of unpaid bills can lead to negative CPF. In addition to the nuisance, this condition can preclude good opportunities, such as a car or home loan. With credit granted by a financial institution, it is possible to pay off debts and overcome this default type.

Redecorating The Property

Are you looking to redesign the environment and look of your home? This requires dedication and investment. You will need a good amount to buy new furniture and decorative objects. In this case, it is recommended to hire a specialized professional. With a personal loan, your dream will be one step closer to reality. Your comfort and well-being deserve this investment. Check bad credit personal loan

Status Markets Review

Choosing the right broker is of the utmost importance these days, especially during a time when there is so much uncertainty in the online trading and digital asset space. You are bound to come across numerous brokers in your search to find the one that is best suited to your needs but does not worry as we are here to tell you that your search is finally over and that Status Markets is the one that you need to choose from now on. This is mainly because this broker possesses both an exemplary user record as well as a global reach and has shown time and again that it is very dependable and user-friendly. Its mindset stems from offering the best services possible to its clients in addition to great customer support. Its qualities are fantastic, and it is truly an exceptional choice as far as trading platforms are concerned, and users of all levels, skillsets and expertise will be delighted with the services provided by Status Markets. Read this Status Markets review to get more details about this outstanding broker.

Suppose you are interested in trading with cryptocurrencies, which is still a relatively new digital asset class. Or perhaps you are more inclined towards trading with stocks, or forex, or indices, or commodities. Whatever the case, all your needs are covered with Status Markets as this broker provides a diverse range making its asset index quite strong. So, no matter what you might be interested in, Status Markets is more than likely to have what you are looking for.

What sets Status Markets apart?

We have alluded to some of the key features of Status Markets previously, but we know that more details should be provided in order for you to know what you are getting into and what to expect. Hopefully, after reading through the in-depth analyses for each point, you will be convinced that this broker is clearly superior to its competitors.

We all know that fraudulent activities are becoming increasingly common nowadays, and scammers seem to lurk around every corner. Traders have become worried as well as generally paranoid, and rightly so, as an alarming number of investors have already suffered great losses. This is precisely why security is paramount, and Status Markets has spared no expense on this front. No longer will you have to worry about cyber-attacks or scams that would otherwise be a regular occurrence with less dependable brokers.

For starters, robust and tightly-knit SSL encryption software and tools have been used by Status Markets to ensure user safety. This feature works well alongside the backend processing that is also a key aspect of this broker, through which unethical use and potential exploitation of user data is no longer a concern. Status Markets is additionally self-reliant due to the fact that it is constantly improving its security measures and developing more efficient methods of combating digital threats. Your investments are thus totally safe when you choose this broker.

Trading Platform

Next, we will inform you about Status Market’s trading platform. Not only does it offer a diverse range of digital assets as aforementioned, but it is extremely user-friendly and accessible for everyone. You do not need to worry about not knowing every single term, definition or key concept as this broker offers knowledgeable support, plenty of educational material, different account options, and the right kind of guidance. The broker continuously collects crucial information and data before subsequently organizing it in order to further aid the clients and provide even more ease of access when trading.

Final thoughts

In conclusion, we discovered that Status Markets is an amazing choice as far as great brokers are concerned, and your experience with it will definitely be a positive one. What we especially liked about it is the fact that it does not cater to just advanced users or seasoned traders, but that it wants everyone to feel involved. 

So, if you are on the lookout for a reliable broker, look no further than Status Markets. Choosing it is all but guaranteed to provide you with considerable profits and in a relatively short amount of time too. Furthermore, you will have the opportunity to learn new things and better yourself while you learn how to become a truly exceptional trader.

Damkonet Review

Damkonet is a name that you should quickly familiarize yourself with, as it is one of the best brokers out there in the sector of online trading. It has a wide range of features and services that can be availed by its users, and the asset index appears to be strong too. Of course, we know that you would need a lot more in-depth information than just that, and so we encourage you to read through this detailed Damkonet review so that you can hopefully be convinced to trust and start using it today.

About Damkonet

Damkonet’s main objective is to allow all of its clients (from a variety of different backgrounds, skillsets and experience levels) to be able to succeed in online trading. As such, it is primarily concerned with providing detailed educational material and resources which serve to teach users about all that would be needed to know in order to create the most profitable and effective trading strategies. 

Furthermore, Damkonet’s platform is incredibly fast, and we noticed that its rather intuitive and instinctive software interface allows traders to utilize the markets in the most efficient way. Simply put, traders will always be treated as the top priority when it comes to Damkonet as the broker aims to create a trading environment that is all-inclusive and diverse.

Types of accounts

As is the case with most brokers, traders are given the option to choose one of several account types. Damkonet is no different, and so let us now talk about the different account options available.

Firstly, you have your ‘basic’ account, which has 1:50 leverage, four business days for withdrawals, and 24/7 customer service. In order to use this account type, a minimum deposit of $250 is required. After that, we have the ‘silver’ account, which has 1:100 leverage, three business days for withdrawals, and the same customer support service. A minimum deposit of $10,000 is required. Next, we have ‘gold’, which is the most popular choice for traders using Damkonet. A $50,000 minimum deposit is required to use this option, and in addition to also having 24/7 customer support, it includes two business days for withdrawal approvals and 1:200 leverage. This account option also has one-on-one training sessions, as well as daily market reviews, events analyses, trading alerts, and a VIP mentorship program.

Lastly, we have the ‘platinum’ account type, which requires a deposit of at least $100,000 to use. It takes three business days for withdrawal approvals and has 1:100 leverage. It has most of the features that the ‘gold’ option provides. However, this account type is unique because it also includes additional services and features such as event trading, a direct line to your own personal account executive, a complete plan to help you with fund management, and, lastly, NFP trading signals (free of charge).

Additionally, there is also a ‘welcome bonus’ for each account option, with 40% for ‘basic’, 50% for ‘silver’ and ‘platinum’, and 60% for ‘gold’.

What assets does Damkonet offer?

Thankfully, Damkonet offers a wide range of tradeable assets, as aforementioned. These include commodities, stocks, forex, indices and cryptocurrencies.

For those who might be unaware or need further explanation, commodities are where traders can get involved in the exchange of numerous raw materials (which includes gold, silver, wheat, soybeans, etc.), stocks represent proportional ownership regarding any given company, forex involves the exchanging of global currencies, indices are a quick way of diversifying portfolios (these mainly concern the top assets of any particular asset class), and finally, cryptocurrencies involve trading in digital assets such as Bitcoin (BTC), Ethereum (ETH), and so on.

Closing remarks

Damkonet is a great choice because, in addition to having a ton of educational material, the one-on-one training courses really impressed us as these provide a beneficial experience on a micro and individual level (which is something that we have not often observed with other brokers). Its customer support is also reliable and quite friendly, and its asset index is indeed strong, as you can see.

All in all, Damkonet can be trusted to help you earn sizable profits via online trading with relative ease.

Once you decide on the key criteria a business opportunity should provide, a solid risk mitigation plan should be developed and followed prior to acquiring a business. Buyer’s remorse is one of the top misgivings that dissatisfied buyers have. You may be great at operating or turning around a business, but there are several specialty areas that need dug into to help ensure you are fully satisfied. Let’s start by sharing a few of these areas this week (we will share more in later blogs).

Agreements – Ensure ALL agreements are reviewed and revised by your business transaction attorney. Many agreements are one sided and don’t provide adequate protection when a deal goes wrong. Get attorney review prior to signing.

Financial Reporting – Ensure you have in-depth, historical records (P&L, Filed Tax Returns, Balance Sheets, etc) with year to date and 3 complete years of performance reviewed by your CPA. Ask an SBA lender what loan and down-payment they would support for this acquisition. If the lender won’t lend or risk their money, why should you? How does this business income and expense items perform to it’s peers in the industry? Are Sales and net income growing? Do they use a system, like QuickBooks for readily available detailed reports?

Customer/Vendor Concentration/Owner Dependence – Are all of your eggs in 1 basket? How many customers are greater than 5% of sales? Are their multiple vendors for key inventory? How much of the business is all about Bob? How easily are these relationships transferred? What added protection should be in the agreements?

Strategies for Growth in Income – Many Sellers will offer income growth strategies, but should you pay for future growth plans? If a Seller wasn’t willing to risk investing in the change, why should you? Pay for realistic performance.

Team with your key advisors, like business brokers, accountants and attorneys to work together for you to help ensure you know what you are getting into.

John LaMay is an Advisor with Sunbelt Business Brokers. He can be reached at (408) 436-1900, x 105, or at jlamay@sunbeltbayarea.net