Cost of goods sold is the direct costs associated with producing and delivering a good or service. Only expenses that you have to make every time you produce a new product (like raw materials) count as cost of goods sold. Any expenses that would remain the same regardless of how many products you produce (like software purchases) go in business expenses. Because of this, cost of goods sold typically applies to product businesses more than service businesses.
Nothing strikes fear in the heart of small business owners more than looking at your income for the quarter or year and realizing that it’s lower than you projected—or worse, lower than the quarter or year before. You probably immediately…
The Balance Sheet Intel That Every Small Business Owner Needs to Stay Financially Healthy Unlike an income statement, which looks at your businesses’ movement of money over a period of time, a balance sheet is a snapshot of your financial…
Over the years I’ve had the pleasure of working with many different types of service-based creative businesses, from pattern designers to dog walkers. No matter what service they are providing, each creative entrepreneur seems to have one big question. How…
We recently talked about how to make sure you’re charging enough for your goods and services so that they’re actually earning you a profit—but that will only get you so far in determining whether your business is financially sustainable in…
Have you ever found yourself wondering “Do I even know how much money I need to make this month to keep my business up and running?” It’s a common roadblock for creative small business owners, and oftentimes entrepreneurs are so…
This year is going to be different. This is the year I finally take my business financials seriously, and get a handle on all of my income and expenses. Can you relate to these business goals? You’re not alone. Create…
The three things we’ll be going over today are creating a usable bookkeeping system, what some commonly forgotten tax deductions are, and an easy tax time checklist so you can make sure you’ve got everything you need or your accountant…
What do you do if you didn’t keep any receipts for the year? Answer: Subscribe to my YouTube channel! Know Your Worth® – The small business owners’ simple guide to bookkeeping and taxes. If you’re looking for a little kickstart…
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