The name ALOEwerx comes from the basic accounting equation: Assets – Liabilities = Owner’s Equity. These are the basic elements of the balance sheet that all your accounts fit into. The equation must balance for your books to be correct. Now, if you’re not an accountant, this still might not describe what ALOE truly is.
The first part is Assets, which are the things your business owns. Supplies, Equipment, Buildings, Land, Inventory all go into this category. Most companies must have assets to stay in business because that is what is used to make products or provide services. Companies like Uber are strange in this category as they have no assets (cars). A debit increases these accounts when purchased, and a credit decreases these accounts when used or depreciated.
The second part of the equation is Liabilities which is debt. Liabilities include unpaid invoices, services that you have been paid for but haven’t performed, and any loans. A company with high liabilities is very debt heavy and has the risk of running into bankruptcy. These accounts are increased with a credit and decreased with a debit.
On the other side of the equation is Owner’s Equity or sometimes referred to as Stockholders Equity. This section of your balance sheet holds all the equity of your company or the leverage of your business. Equity can house your Retained Earnings (Net Income for private businesses), Common Stock for any publicly traded companies, and Additional Paid In Capital. An important metric to use in your business using this is your Return on Equity Ratio.
ALOEwerx is a painless accounting service for all small businesses and self-employed independent contractors and freelancers. What are painless accounting services though? The accounting services that ALOEwerx provides includes bookkeeping, accounting, and tax preparation services. This includes all your day-to-day entries that affect a business’s ALOE. The accounting takes care of the monthly, quarterly, and yearly processes, as well as everything you need to file your business taxes. We say painless because it’s “hands off” for you (and it’s also a play on the the pain relieving gel known as ‘Aloe Vera’.) Your books are kept on a cloud based system to allow for maximum transparency between us and you. This also gives access anywhere anytime without you having to enter any of the ALOE items yourself.