To stay in business, your company needs to earn more than it spends, at least over the long term. A net income formula tells you whether you are earning or losing money. However, this equation only ...

Your company's reconciliation of net worth, also known as surplus reconciliation, is the accounting of business deals that increase or decrease its net worth. The goal of the reconciliation is to ...

Balance sheets and income statements are important tools to help you understand the finances and prospects of your business, but the two differ in key ways. Knowing when to use each is helpful in ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...