Accounting was a great degree to get in college because it has such a wide real world application. I have been an accountant, chief financial officer, vice president of operations, president, stockbroker, insurance agent and small business owner. Currently I am a small business owner with my wife in Roswell, Georgia. Advantages of a Small Business Owner with an Accounting Degree As a small business owner I wear many hats. My understanding of accounting enables me to do financial reporting and management applications of that information. For instance I knew how to setup the business myself saving hundreds of dollars. My ability to understand things such as the best business entity to setup, how to file tax forms, filing of information, classifying
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My wife and I have used cash flow to capitalize our business. Using my knowledge of banking enables us to get the best rates and least expense for the business but no debt is the best way to start. Taxes can be very intimidating for a small business owner. But having full knowledge and understanding of all taxes applicable to our business and to us personally has helped in setting up the business and being able to pay our taxes on a timely basis avoiding penalties and interest. A College Degree is Only the Beginning The whole purpose behind a college degree is to understand how to solve problems in a particular discipline. It's the application of that knowledge that helps a person benefit from the time spent earning that degree. You must be creative and persistent to get by in this world. By finding ways to apply your knowledge introduces your creativity as a means to profit makes an employee a valuable asset to the business. But even more important is the tenacity to continue to strive to find new and better ways to accomplish task and goals is what education is all about. I have always been amazed at the resources I can call upon in order to solve problems and streamline systems to ensure the profitability of any …show more content…
Within the assets portion of the equation lies various levels of liquidity and can be grouped into current and noncurrent assets. Current assets are assets that are likely to be converted into cash with a year of a company's balance sheet. Noncurrent assets are assets that can have undetermined cash conversion time period and are typically company buildings and plant equipment. The materials and completed goods of a company that will be available for sale is considered inventory and can be a substantial portion of their current assets. There is a balance of inventory that needs to exist. If there is too much inventory then there are concerns of storage, obsolescence and spoilage. If there is not enough inventory then the loss of revenue opportunities can arise. Inventory is an important factor to the revenue, shareholder earnings and the tax liability of a company. There are four accounting methods that can be used to manage inventory and the method chosen is dependent on how the costs of the Inventory flow into the Cost of Goods Sold account. The Cost of Goods Sold is the cost of merchandise sold which is removed from inventory as a result of sales. The first method is specific identification and is a direct correlation between cost and physical flow. When a specific item is sold from inventory, the cost of that specific item is identified, recorded as
My wife and I have used cash flow to capitalize our business. Using my knowledge of banking enables us to get the best rates and least expense for the business but no debt is the best way to start. Taxes can be very intimidating for a small business owner. But having full knowledge and understanding of all taxes applicable to our business and to us personally has helped in setting up the business and being able to pay our taxes on a timely basis avoiding penalties and interest. A College Degree is Only the Beginning The whole purpose behind a college degree is to understand how to solve problems in a particular discipline. It's the application of that knowledge that helps a person benefit from the time spent earning that degree. You must be creative and persistent to get by in this world. By finding ways to apply your knowledge introduces your creativity as a means to profit makes an employee a valuable asset to the business. But even more important is the tenacity to continue to strive to find new and better ways to accomplish task and goals is what education is all about. I have always been amazed at the resources I can call upon in order to solve problems and streamline systems to ensure the profitability of any …show more content…
Within the assets portion of the equation lies various levels of liquidity and can be grouped into current and noncurrent assets. Current assets are assets that are likely to be converted into cash with a year of a company's balance sheet. Noncurrent assets are assets that can have undetermined cash conversion time period and are typically company buildings and plant equipment. The materials and completed goods of a company that will be available for sale is considered inventory and can be a substantial portion of their current assets. There is a balance of inventory that needs to exist. If there is too much inventory then there are concerns of storage, obsolescence and spoilage. If there is not enough inventory then the loss of revenue opportunities can arise. Inventory is an important factor to the revenue, shareholder earnings and the tax liability of a company. There are four accounting methods that can be used to manage inventory and the method chosen is dependent on how the costs of the Inventory flow into the Cost of Goods Sold account. The Cost of Goods Sold is the cost of merchandise sold which is removed from inventory as a result of sales. The first method is specific identification and is a direct correlation between cost and physical flow. When a specific item is sold from inventory, the cost of that specific item is identified, recorded as