Accounting–Cash vs. Accrual

Cash accounting is the simplest form of accounting and is typically used by small, sole proprietorship businesses. With cash accounting, all expenses, income, etc… gets recorded whenever the cash (or form of payment) transfers hands.

For businesses with over $5 million in revenue, corporations, and inventory-based businesses, accrual accounting is better to use. Accrual accounting notes the expense/income at the time the transaction occurs. For example, if the company sells a TV for $600 in May, but doesn’t receive the payment till the next month, through accrual accounting, their books will show a $600 revenue for May, even though the payment wasn’t received till June. With cash accounting, the books would have recorded an income of $600 in June, and nothing in May.

Especially when the company is based on inventory, accrual accounting is preferred. If you have a small service-based company, it’s just fine to record the revenue at the time the customer pays for the service. However, if you have 2,000 TVs sitting there, and 1,300 of them sold, but won’t be payed till next month, you want the revenue of those 1,300 TVs to be recorded as that month’s income, not the next’s.

Therefore it depends on the type and size of the business as to which type of accounting to use.

Harry Browne’s 5 Steps

Harry Browne’s secret to selling anything is “Find out what the customer wants and help him get it.” In this way you are actually selling something they want rather than forcing it upon them. Who wants an obnoxious, in-your-face salesman telling you about something utterly irrelevant to your life anyway? There are five steps, according to Harry Browne, that help you to make a successful sale.

#1: Discover what the customer wants. You must find out what he wants. Maybe you’re not selling something he wants, in which case, don’t waste your time. Sell to someone who wants what you have to offer.

#2: Summarize the motivation. Once you know what the customer wants, find out why he wants it. Does he want a new car because his old one broke? Because his child needs one? Because he simply desires another car? Then summarize this in a sentence, telling him, to make sure that you know exactly what he wants and why. Continue reading

Absolutely Delicious Pie!

Hi everybody!

Yesterday I made an apple pie but I used both apples and pears instead of just apples. It turned out amazing, so I figured I’d share it with you.

Pie Crust*: (I make my own pie crusts, but you can also use bought ones. It never tastes the same though!😀 )

-1 cup (2 sticks) of cold butter, in pieces.

-2 cups of flour (I use white flour only, you can also use 1 1/3 C white flour and 2/3 C whole wheat pastry flour).

-Tiny pinch of salt.

-1/4 C cold water.

Place the flour, butter and salt in a food processor and pulse till combined (about 30 seconds). Add cold water and mix till combined (maybe a minute more?). Set the ball of dough in the fridge to cool (rolls out better if cool-you don’t have to though, I do it both ways).  Continue reading

Franchise vs. Independent

What is a franchise? Well, some of the most popular ones, and most common, are fast food places, such as McDonald’s and Wendy’s. Other’s such as Lowe’s, Best Buy, Target and Costco sell home goods and such.

All the above stores have one thing in common: each store is part of a larger franchise that has many “sub-stores”. So, whether it’s located in Kansas, or here in Montana, Target has the same logo, the same red letters, the same products.

You can decide to start a franchise branch. Let’s say you decide to open a new Lowe’s in your city. You then talk to Lowe’s, the corporation, and they help you. You don’t have any risk at all, because they help you plan your location, Continue reading

11 Things About Me

This is for the Liebster award, for which I was nominated three times.

  1. I love organizing things–rooms and people.
  2. I love baroque opera music.
  3. I hate spiders, and all things creepy-crawly.
  4. My name means Mary in Hebrew.
  5. I want to be an architect.
  6. I make jewelry.
  7. I love skiing.
  8. I love dolphins.
  9. I want to go to New York City.
  10. I love America!
  11. I really like blogging.

Thanks to all those who nominated me!


Liebster Award

I was nominated five times for the Liebster award, so I want to thank Allison, LeonaKaliaOdessa and Jada for nominating me. I really didn’t expect it!😀

These are the rules:

1: Thank the blog who nominated you and link back to them.

2: Make a blog post outlining 11 facts about you.

3: Answer the 11 questions from the blog who nominated you.

4: Prepare 11 questions for those you will nominate.

5: Nominate 5-11 new bloggers (those who have less than 200 followers) by commenting in one of their blog posts.

So, these are my answers to the questions Continue reading