The equity section on the Balance Sheet often gets overlooked and forgotten about because users of the financial statements don't usually know what the numbers mean. But we want to clear that up for you and help you keep your equity section clean and understandable!
In this video you will find:
0:00 Owners Equity
1:25 Equity on the Balance Sheet
2:10 What's in Equity?
2:48 Owner's Investment
3:32 Owner's Distributions
3:45 Retained Earnings
4:20 Net Income
5:30 Equity Chart of Accounts
6:45 Real Equity Example
7:03 Journal to Close Equity
10:08 Equity Fresh Start
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
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