8 essential accounting equations every business owner should know | Run your business
Learn more about accounting equations for business owners: https://intuit.me/3DNACFZ
If you’re a small business owner who prefers to monitor your company’s cash flow with your own two eyes, there are financial accounting equations that you can use to get started. In this video, Astrid Daniela Galvez (QuickBooks ProAdvisor and Tax Specialist) lays out 8 simple accounting formulas and how to utilize these calculations to assess the financial health of your small business.
00:00 – Introduction
01:08 – The accounting equation
01:35 – Net income equation
01:59 – The break-even point equation
02:32 – The cash ratio equation
02:49 – The profit margin equation
03:19 – The debt-to-equity ratio equation
03:41 – The cost of goods sold equation
04:03 – The retained earnings equation
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.
Click for the latest updates…