What is equity and how can it be dangerous?

Equity is the portion of a business that belongs to owners. Quite frankly, “book equity,” the difference between your written assets and liabilities, is not terribly useful to web entrepreneurs  because our businesses usually have few assets on the books.  We like to take advantage of Section 179 write-offs.  Furthermore, as I’ve written before, web […]
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Happy Accounting Day!

Yes, folks, today is National Accounting Day. I like to observe Accounting Day by reflecting on the importance of Accounting, and how it affects our everyday lives.  Many people think of Accounting in terms of taxes, and they don’t like taxes, and hence, don’t like Accounting either.  But I respectfully disagree.   Accounting is the language […]
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What are liabilities?

Liabilities are future sacrifices that your business will be required to make.  In your books, you must record any liabilities for moneys that you owe.  For example, a credit card purchase creates a liability; you owe the money. There is another kind of liability, however, which is more insidious.  This is a monthly cost which […]
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Account for the future, not the past

I just read a great post over at ProBlogger: How to Use Big Business Finance Principles to Grow Your Email List.  The author, Josh Turner of gatewaycfo.com, suggests using a dashboard to measure the progress of your strategy: I love this! Think about the strategy behind this dashboard:Weekly guest posts drive traffic.  Traffic and weekly […]
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