As accountants we have to assume that your business will exist forever and ever into the infinite future, that is unless you tell us that something else might happen in the mean time. We truly hope that is true, but our government is not so patient. Since infinity is a long time for Uncle Sam to wait to get his taxes he asks us to send them in on a regular basis (Actually he did use to be a lot more patient but I’ll write more about that later). The consequence is that this infinite amount of time has been broken down into smaller bits called periods.
In every one of those little periods, we perform this little song and dance with the numbers of your business which correctly, succinctly and exactly summarizes the economic events that transpired, and it is called the accounting cycle. Thus the name of this blog.
Aside from knowing how much to pay Uncle Sam these little summaries, which are called financial statements can be very useful for business owners to understand what is going on with their business.
My mission is help business owners better understand what all the numbers mean to them so that they can be more successful with their day to day operations in the short term and be able to build wealth in the long term.
Why cycling? Well I am very passionate about cycling as well, and a post or two about that might pop up too.