Accounting Principle #1 – Match revenues and expenses.

Accounting Principle #2 – Buy assets that increase in value; rent assets that go down in value.

 We know that operating a business comes from goals and mission statements, and a lot of personal instincts. But all businesses rely on accounting principles, the common ground for all businesses, to gather the financial data and tell the story of your business successes. These accounting principles and terms may not always be the exciting part of your story but they are they should be the bedrock upon which you build that story. So bringing those principals into your decision-making is natural. Our goal is help you keep to these principles and focus on the main goals of operating your business We’ve stated two of the more commonly known principles above:

• Match Income and Expenses – your income is monthly; shouldn’t your expenses be monthly?

• Value of Assets - Would you buy a house that you know will go down in value? No one wants to buy at the top of something’s value and watch it go down. And that’s even more true in business where the balance sheet shows the asset’s value every month! As the old saying goes, the benefits from using the asset, not owning, that help your business succeed. For assets whose value starts going down the day you start using it, the prudent decision is to rent it and keep with Accounting Principle #1.