Capital assets, dividends, gross profit margin, floating liabilities, working capital… When it comes to owning and running a small business, there are many financial terms involved. It can be overwhelming! Like most small business owners, you probably find it more satisfying to create products and connect with customers than to worry about finances. However, understanding key financial terms is crucial for the success of your business.

Efficient record keeping and receipt organization is a crucial part of financial management in small business. It ensures you have a clear picture of your expenses, simplifies tax filing, and helps you stay on top of your budget. That said, most small business owners find this aspect of running a small business to be their least favourite! The task of keeping track of receipts and financial information can be daunting. Where does one even start? In this blog post, we'll provide some simple guidance to get you started.

As a business, you may have a mission and a vision statement. These were likely established when you created your Business Plan and defined your Brand Identity. But what are your business goals?

Now that personal tax season is here you will need to start gathering up all your tax slips to report your income and deductions for 2022.  With a lot of institutions and businesses going paperless you will need to determine what tax slips may be coming by e-mail or that you need to sign into your account to download versus arriving in the mail. 

How to be an Attractive Borrower

Have you heard of The Five C's of Credit? It is a classic banking industry guideline that lenders use when assessing the merits of a loan application. The Five C’s of Credit are Character, Capacity, Conditions, Capital, and Collateral.

The point at which a small business’s sales exactly cover its expenses is called The Breakeven Point. Performing a calculation called a break-even analysis can help business owners determine the amount of product they must sell to generate a profit. Knowing your Breakeven Point is crucial for selecting product and service pricing and adjusting operating costs when necessary. To calculate your Breakeven Point, you must know your fixed costs, variable costs, and the selling price of your product or service.

Being a successful small business owner requires that you understand your company's financial statements. Fortunately, the three key financial statements you’ll be working with are more straightforward than you might think.

Capital assets, dividends, accounts payable, contribution margin, floating liabilities, and working capital; when it comes to owning and running a small business, there are many financial terms involved. It can be overwhelming! Like most small business owners, you probably find it more satisfying to create a great product or service and connect with customers than to worry about finances. You may be tempted to leave it all up to your accountant and bookkeeper. However, entrepreneurs need to know key financial terms.

Running a seasonal business is all about planning. This is especially true when it comes to finances. Businesses with seasonal operations, such as those in the tourism and agriculture industries, may have difficulty meeting financial obligations in slow times. Because fixed costs don't go away in the offseason, seasonal businesses need to pay special attention to how they manage their cash flow.