Run Your Business | 8 Essential Accounting Equations Every Business Owner Should Know

If you’re a small business owner who prefers to monitor your company’s cash flow with your own two eyes, there are financial accounting equations that you can use to get started. In this video, Astrid Daniela Galvez (QuickBooks ProAdvisor and Tax Specialist) lays out 8 simple accounting formulas and how to utilize these calculations to assess the financial health of your small business.

00:00 - Introduction

01:08 - The accounting equation

01:35 - Net income equation

01:59 - The break-even point equation

02:32 - The cash ratio equation

02:49 - The profit margin equation

03:19 - The debt-to-equity ratio equation

03:41 - The cost of goods sold equation

04:03 - The retained earnings equation

Learn more about accounting equations for business owners: https://intuit.me/3DNACFZ