In last week’s installment of our “Building Freedom into your Business” video series, we talked high-level about how business owners are creating not just profits, but freedom.
This week, we get more nitty gritty. Learn how embracing accrual accounting is the only true way to have full visibility into your business. And ultimately, why visibility equals freedom.
Check the video out here:
- Unlike some other business models, e-commerce businesses must use accrual accounting to gain true visibility into how your business is operating
- If you use cash basis accounting, your Profit & Loss statement will be all over the map. Since the numbers don’t mean anything, they’re easy to ignore. And that’s how problems arise!
- If you use accrual basis accounting, your Profit & Loss statement will immediately show you issues – whether it’s unusual spending or an unexpected dip in profits. After all…