Black Friday – the day you're Back in the Black. No, not the 1980 AC/DC album. It's the day after American Thanksgiving when everything everywhere goes on sale – not just in the USA. Originally the term had nothing to do with numbers or money. But, it became known as a day when American retail stores made large profits because Americans typically started Christmas shopping on that day. So, what does that have to do with accounting and blackness? Well, back in the dark ages (i.e. the era before computers...40 years ago), the adding machine was a major tool in the accountant's workshop. Kind of like a typewriter, it used a 2 colour ribbon – black and red; positive numbers were printed in black and negative numbers were printed in red. So, when you typed out a calculation of your company's overall profit (for the day/week/month/etc), it was easy to see whether you made a profit or incurred a loss. Just look at the bottom line – was it red or black? American retailers often relied on holiday revenues to turn a profit for the year, so it was common to see a red bottom line throughout the year. Then, of course, the day after Thanksgiving, they were finally "back in the black."
If you want to stay in the black, you need good tax and accounting advice. One of our members can help.