Why you should keep business and personal purchases separate?
The New Entrepreneur's Guide Series - Why You Shouldn't Mix Business and Personal Purchases? Keeping company and personal finances separate is one of the most fundamental aspects of accounting. However, everyday situations can arise where a business purchase is paid for with a personal bank card or a personal purchase with a business card. In a rush, using the wrong card is a human error, and a single transaction usually doesn't cause problems. If company and [...]
What do the balance sheet figures mean?
New Entrepreneur's Guide series - What do the balance sheet figures mean? Many entrepreneurs first look at the income statement when reviewing financial statements. It quickly shows how the company has performed during the financial year. The balance sheet, on the other hand, is often overlooked, even though it provides important information about the company's financial situation. The balance sheet shows, for example, what the company owns, how much debt it has, and how its operations are [...]
What does an income statement tell you about your business?
A New Entrepreneur's Guide series What does an income statement tell you about your business? You won't get a complete picture of your company's finances just by looking at your bank account balance. The bank account balance tells you how much money the business has available right now, but it doesn't tell you whether the business has been profitable. An income statement, on the other hand, shows what makes up your company's income, what kind of costs are incurred by operations, and whether the company has a profit or loss at the end of the financial year. […]
What should an entrepreneur know about VAT returns?
A New Entrepreneur's Guide Series: What should an entrepreneur know about VAT returns? If a company is registered for value added tax (VAT), it also has an obligation to submit VAT returns. For many entrepreneurs, the subject may seem complicated at first, but understanding the basics will make managing the company's finances and cooperating with an accountant easier. What is a VAT return? A VAT return is a notification by which a company provides information related to value added tax to the Tax Administration. The return is based on the company's accounting, [...]
Entrepreneur's salary and income from the business
A New Entrepreneur's Guide Series - Entrepreneur's Salary and Income from the Business Money accumulated in a company's account does not automatically mean that the entire sum is available for the entrepreneur to use personally. How an entrepreneur can earn income from their business activities depends primarily on their company structure. From an accounting perspective, it is important that the company's and the entrepreneur's assets are handled correctly. In different company structures, the entrepreneur's income is accounted for in different ways. Sole trader's private withdrawals in accounting A sole trader does not pay [...]
As summer approaches, it's worth checking the company's financial situation.
A New Entrepreneur's Guide Series: It's Worth Checking Your Company's Financial Situation as Summer Approaches Summer brings changes to everyday life for many entrepreneurs. For some, summer means the busiest season of the year, while for others, it offers an opportunity to slow down and take a breather. Even though your own work rhythm changes, your company's financial matters don't stop for the summer. Therefore, before summer, it's a good time to pause and examine where the company actually stands. […]
What does an accountant need for bookkeeping?
New Entrepreneur's Guide series What does an accountant need for bookkeeping? For smooth bookkeeping, it is important that the accountant has access to the necessary information and receipts for the company's transactions. When the required information is provided on time, the bookkeeping stays up to date and a clear overall picture of the company's finances is formed. The items to be submitted to the accountant depend on the company's operations, but certain basic information applies to almost all companies. Bank statements and [...]