Now for the fun stuff! Everyone loves income, the more the better. What is income? Income is often referred to as revenues on the financial statements. The official definition from the International Accounting Standards Board (IASB) is:
Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity other than those relating to contributions from equity participants.
Did you get all that? Income for a basic small business is revenue or money received from selling your service or product. If you priced your service or product correctly this will increase your cash in your bank account which should increase your equity in the business. You have to love accounting!
Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity other than those relating to contributions from equity participants.
Did you get all that? Income for a basic small business is revenue or money received from selling your service or product. If you priced your service or product correctly this will increase your cash in your bank account which should increase your equity in the business. You have to love accounting!
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