[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-572620-105":53,"doc-detail-572620-en":120},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":113,"head_meta":115,"extra_data":117,"updated_unix":119},105,"en","accounting-cheat-sheet-for-small-business-owners-quick-definitions","Accounting Cheat Sheet for Small Business Owners - Quick Definitions","","Accounting cheat sheet for small business owners explaining core financial terminology used to run and evaluate a business. Covers cash flow, fixed and variable costs, overhead, marginal cost and how to interpret the marginal cost curve, plus gross profit and net profit expense categories. Includes margin calculations, burn rate and runway with seed-money examples, and clarifies CPA requirements and ROI usage. 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It is typically used to analyze and compare performance across time frames like monthly or annual periods.","Answer",{"name":105,"@type":100,"acceptedAnswer":106},"How do gross profit and net profit calculations differ in what expenses they include?",{"text":107,"@type":103},"Gross profit focuses on production-related items such as cost of labor and costs of utility/equipment/shipping materials for production. Net profit subtracts all expenses from revenue, including administrative labor, taxes, rent, debt, non-production vendors, and office utilities.",{"name":109,"@type":100,"acceptedAnswer":110},"What are burn rate and runway, and how are they calculated?",{"text":111,"@type":103},"Burn rate is the monthly expenses minus any monthly revenue. Runway is calculated by dividing the starting investment by the burn rate, representing how many months the business can continue at that spending level.","https://schema.org",{"og:url":78,"og:type":114,"og:title":59,"og:site_name":86,"og:description":61},"article",{"robots":116,"canonical":78},"index,follow",{"doc_id":118,"site_id":56},572620,1791928536,{"code":4,"msg":5,"data":121},{"doc_id":118,"user_id":122,"nickname":83,"user_avatar":123,"doc_module":9,"category_id":20,"category_name":21,"doc_title":59,"doc_description":61,"doc_content":124,"file_id":125,"file_url":126,"file_type":127,"file_size":128,"view_count":4,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":9,"language":129,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":130,"faqs":131,"seo_title":132,"seo_description":61,"update_tm":119,"read_time":4},3985747858866,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","Accounting  \nCheat Sheet forSmall BusinessOwners  \nThe average small business owner or entrepreneur who isthinking about starting their own business probably already has somebasic knowledge of financial terminology(like assets and inventory).Depending on your business(and whether you have a good accountant)it also may not be vital to understand the difference between terms likeaccrued expenses and accounts payable.Instead,we're providing a cheat sheet of relevant,often misunderstood terms we think may actually benefit newsmall business owners.  \nCashCash flow refers to the money being taken in by your businessrevenue)and the money going out (expenses).This metric is usually used forFlowanalyzing and comparing specific time frames,like annual cashflow or monthlycashflow.  \nFixedThe costs that are the same every month -like your rent,Costsloan payments or salaried labor.Most fixed costs will be established by some kindof a contract,like a lease or employment contract.  \nVariable Utilities,supplies,hourly labor and other costs that may fluctuate monthCoststo month based on production.  \nOverhead Allbusiness expenses that aren't specific production costs.  \nThis metric is used to determine how much it would cost to produce additionalunits(measured in increments of one unit and charted as a graph:Y-axis =production cost,X-axis =quantity).The bottom of the U-shaped marginal costcurve represents the highest production efficiencies.  \nMarginal  \nCost  \nMarginal Cost Example  \nImagine making an omelet.You can make a two-eggomelet in nearly the same amount of time it would take tomake a one-egg omelet.This proves true for egg three andegg four,but the skillet you're using isn't big enough for eggfive.Now for that one extra egg you must get out a secondskillet,turn on a second burner and deal with the cleanup fora second skillet,all just to get one extra egg.The lowest pointof the marginal cost curve in that example is egg four.  \nCalculated by subtracting production and distribution costs from revenue.  \nWhich Expenses Are Included in Gross Profit Calculations?  \nCost ofCost ofUtilityEquipment Shippingmaterialsproductioncosts forcostslaborproduction  \nNetCalculated by subtracting all expenses from revenue,including things likeProfitadministrative labor costs,taxes,rent payments,debt,non-production vendors(Bottom Line)(like accountants)and office utilities.  \nA method for measuring the profitability of a business.Divide the gross profit orProfitnet profit by revenue and multiply by 100.($100,000/$750,000x100=13.34%MarginsMargin)Can be used to compare historic performance,performance versuscompetitors and identify trends.  \nBurnMost commonly associated with startups backed by venture capital or investors,burn rate is essentially the monthly expenses of a business as it pertains to seedRatemoney -or the initial investment.Any monthly revenue should be subtracted frommonthly expenses to determine burn rate.  \nCalculated by dividing the total starting investment available by the burn rate.If aRunwaycompany got $10,000,000 of seed money and is spending $1,000,000 a monththeir burn rate would be $1,000,000 and their runway would be 10 months.People who get a smallbusiness loan(or are financing a newbusiness out of their own savings)can use the same formula todetermine their burn rate and runway.Certified  \nA CPA is an accountant who has been certified by the American Institute ofPublicCertified Public Accountants(AICPA).CPAs must meet educational requirementsAccountant(150 hours of specialized education plus at least a BA in business administration,(CPA)finance or accounting)and pass an exam.  \nFrequently referred to simply by its acronym,return on investment isReturn onvaluable for measuring the performance of things like marketing campaigns,Investmentbuilding/equipment improvements or training efforts.ROI can be a powerful tool for(ROI)analysis,but the key is being able to accurately identify and measure the revenuegenerated by the investmen","cbCailmpJ7ofF6Px","https://ap.wps.com/l/cbCailmpJ7ofF6Px","pdf",841083,"English","# Key Accounting Terms\n## Costs and Profit Metrics\n## Cash Flow, Margins, and Break-Even Thinking\n## Burn Rate, Runway, and Investment Returns\n## CPA and ROI","[{\"question\":\"What is cash flow and how is it used in small business analysis?\",\"answer\":\"Cash flow is the money a business takes in through revenue minus the money it spends on expenses. It is typically used to analyze and compare performance across time frames like monthly or annual periods.\"},{\"question\":\"How do gross profit and net profit calculations differ in what expenses they include?\",\"answer\":\"Gross profit focuses on production-related items such as cost of labor and costs of utility/equipment/shipping materials for production. Net profit subtracts all expenses from revenue, including administrative labor, taxes, rent, debt, non-production vendors, and office utilities.\"},{\"question\":\"What are burn rate and runway, and how are they calculated?\",\"answer\":\"Burn rate is the monthly expenses minus any monthly revenue. Runway is calculated by dividing the starting investment by the burn rate, representing how many months the business can continue at that spending level.\"}]","Accounting Cheat Sheet for Small Business Owners - Quick Definitions | PDF"]