Joshua V. Azran was featured as an expert for the DocStoc Business Video Series

Why You Should Keep Good Financial Records

Joshua V. Azran, partner/owner of Azran Financial (www.azranfinancial.com), discusses why you should keep organized financial records.

  1. Help identify sources & uses of funds, plus accurately plan for ongoing needs
  2. Easily prepare statements for shareholders, loan apps, filings, etc.
  3. Important for tax filings to track taxable income & deductible expenses

Best Practices for Keeping Good Financial Records

As an entrepreneur, one of your many responsibilities includes keeping thorough financial records. But how many should you keep and what is the best way to organize them? Here are a few tips to help you manage this key aspect of your business:

Different Types of Financial Statements

  1. Balance sheet- summary of assets, liabilities & owners’ equities at the end of a specific period
  2. Income statement- summary of revenues & expenses during a specific period
  3. Cash flow statement- illustrates operating, investing & financing activities that affect cash during a specific period

Cash vs. Accrual Accounting for Small Businesses

Joshua V. Azran, partner/owner of Azran Financial (www.azranfinancial.com) discusses the differences of cash and accrual accounting for your small business.

  1. Different methods of reporting for tax & financials is allowed by the IRS
  2. Cash accounting- income or expense recorded when cash is received
  3. Accrual accounting- income or expense recorded at time of performance

Basic Terms of Accounting

Joshua V. Azran, partner/owner of Azran Financial (www.azranfinancial.com) discusses the basic terms of accounting. Learn these accounting tips to financially better your business.

  1. Asset- resource that generates an economic benefit
  2. Liabilities- any type of financial obligation, debt or responsibility
  3. Income (revenue)- increases in economic benefits over time
  4. Expense- decrease in economic benefits over time
  5. Debit- an increase in asset or expense account or a decrease in liability income or equity account
  6. Credit- an increase in liabilities income or equity account or a decrease in assets & expense accounts