Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Generating Revenue, Insurance, Taxes, Etc. > Small Business Finance
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 10th January 2019, 09:43 PM   #1
VIP Contributor

Join Date: May 2010
Location: Detroit, MI
Posts: 1,352
Default Why Is Statement Of Retained Earnings Important For Small Business?

One of the most important financial and accounting concepts to be aware of when it comes to your company is retained earnings. Retained earnings can be seen as a business savings account that can grow or decrease, based on financial decisions. Mathematically, retained earnings are determined by:

Retained earnings = Net income Ė dividends + beginning retained earnings balance.

Letís assume this business scenario. A company currently has $10,000 in beginning retained earnings along with $7,000 in profit. During this set time the company paid $4,000 in dividends. Using the formula, the companyís current retained earnings value would be $13,000. ($7,000 Ė $4,000 + $10,000).

Itís important to note that retained earnings are not the same as net income, also known as revenue. Instead, retained earnings are based on a companyís total profit along with other factors. Retained earnings are a historical count of net earnings that havenít been paid out to shareholders.

Read more - http://www.smallbizviewpoints.com/20...mall-business/

AngelBiz is offline   Reply With Quote
Register or log in to remove this ad.


Similar Threads
Thread Thread Starter Forum Replies Last Post
Important Facts About Small Business Insurance You Must Know AngelBiz General Small Business Issues 0 9th October 2018 09:14 PM
Business Ideas - How To Open An Engineering Services Business Thirumuguran C General Offline Marketing 0 17th April 2015 12:42 AM

Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Small Business Finance RSS for this Category Only: Small Business Finance

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Used Values - Free Links
Blue Book

All times are GMT -5. The time now is 07:54 AM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy