Many small business owners believe that profit equals cash. They see a positive number on their profit and loss statement and assume that money is sitting in the bank, ready to spend. Unfortunately, this is one of the most dangerous misunderstandings in small business finance.

Every small business owner needs to know the number that separates profit from loss — your breakeven point. It tells you exactly how much revenue you need to cover your costs before you start earning profit. Understanding this number helps you make smarter decisions about pricing, budgeting, and growth.

Building strong business credit is a foundational step for any small business owner who wants to access financing, favorable supplier terms, and safeguard their business’s financial health. When your enterprise has a solid business credit profile, you’re better positioned to secure loans or lines of credit, obtain favorable terms from vendors, and separate your company’s risk from your personal credit.

If you’ve ever nodded along in a meeting while someone dropped words like “EBITDA” or “working capital,” you’re not alone. Most business owners learn finance by fire — juggling cash flow, invoices, and tax deadlines before anyone hands them a Financial Glossary. But understanding a few key terms isn’t just about sounding smart — it’s about making sharper, more confident decisions that protect your bottom line. Let’s decode the language of Business Finance 101, one real-wor

Understanding your Owner’s Equity is one of the most fundamental steps toward mastering your business finances. Yet many small business owners can’t clearly define what it means — or how it affects their day-to-day decisions. Let’s break it down in plain English.

Accurate transaction categorization in QuickBooks Online (QBO) is the foundation of reliable financial tracking. Every income, expense, and transfer you record affects your financial reports, taxes, and business insights. When categories are inconsistent—or missing—you risk: Misstating profits and taxes Making poor budgeting decisions Losing time (and money) during tax prep or audits Proper QBO categories keep your books clean and your decisions data-driven.

Bookkeeping is the process of recording and organizing all financial transactions in a business. In simple terms, it’s keeping track of where money comes in and where it goes out. This includes documenting sales, purchases, payments, payroll, and other financial activities. Think of bookkeeping as the foundation of your small business records — without it, you can’t clearly see your financial picture.

Discover the must-read finance books for business owners! Unlock the secrets to financial success & grow your wealth with these ten titles.

Mastering negotiation is key in business. Chris Voss's 'Never Split the Difference' empowers you with tactics for success.

Economics, often referred to as the "dismal science," is anything but dull. It's a field that delves into the complicated world of human...

Ray Dalio's "Principles: Life and Work" is more than just a book; it's a treasure chest of insights and wisdom, distilled from a lifetime...