If you are setting up a small business or a home-based bookkeeping business, ideally you will be looking to use suitable software to keep track of the accounts for each business.
There is a multitude of products out there that can help you do this but short of reviewing each one individually, it is difficult to suggest the best one for your business.
As the requirements of each business will be different, here are some of the software features you need to compare against your business needs before deciding which product to purchase.
Full-service accounting firm deserves professional and personalized services, as well as guidance in your daily business decisions.
Thus, the income statement/profit and loss account of a firm report the results of operations in terms of income/net profit in a year. The profit and loss account can be presented broadly in two forms: the usual account form and step form.
In operational terms, the accounting report that summarizes the revenue items, the expense items and the difference between them (net income) for an accounting period is called the income statement. There are three contents of the profit and loss account: revenues, expenses and net income/profit/loss.
Revenues can be defined as the income that accrues to the firm by the sale of goods/services/assets or by the supply of the firm's resources to others.
An important item of expense appearing in the profit and loss account is the cost of goods sold. The difference between revenues and expenses is net profit. The profit and loss account may also show the appropriation of the net profits between dividends paid to the shareholders and retained earnings/ amount transferred to reserves and surplus.