When building a business, this is one of the questions many business owners must deal with on day one. It’s like asking a four-year-old how they like their coffee. It’s a sad truth that life isn’t fair and most new business owners have never been taught the finer points of what cash vs. accrual really …
5 DOs and 5 DON’Ts of the New Fall Season Fall officially begins this week and there are some key housekeeping things, fall cleanup if you will. DO keep an eye on your balances. DON’T assume that all your bills are on your budget. DO review your savings. DON’T give in to panic and spend …
…no, that’s not a typo. September (unbeknownst to me at least) is Self-Improvement Month, Disaster Prep Month, Responsible Dog Owner Month, AND National Velociraptor Awareness Month… among other things. So, let’s break this down. In honor of Labor Day (yeah, that’s on the calendar too!) and kids going back to school (disaster!), we are focused …
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Reconciliation is one of those painful “best practices” that many business owners avoid, ignore, forget about or put off. In the daily grind, this hardly seems critical. And without bookkeeping software to streamline the process, reconciling your Balance Statement is downright tedious and feels like a waste of time. Reconciliation is like insurance: until there’s …
We see it all the time – during discovery sessions, we find assets that are not posted on the books. Let’s review the top four we typically see missing. Top 4 Missed Assets Often, assets get overlooked and never make their way onto the books. There are four common asset areas where business owners struggle …
What is co-mingling anyway, and what’s wrong with co-mingling my funds? Well, would you throw away a $500 watch, or ring? How about five $100 bills? In Massachusetts, that’s what you pay yearly to maintain your limited liability. And this is protection from another legal entity being able to acquire all your personal assets should …
What does independence mean to you? For our founding fathers, it was the need for political independence that drove them across an ocean to build their vision. For most kids around sixteen years old, that license is the ultimate in independence. Finance independence that comes from getting a job is a signifier of adulthood. And …
There are basically three accounts that the invoice itself moves through. Outside of that movement, there are transactions that trigger movement through this path by matching them to the invoice at various stages. In the beginning, there is the service or product provided, that must be pulled into the invoice so the client or customer …
Banking At the bare minimum, we always recommend a minimum of a checking and savings account. These must be in the business’ name, not yours. For most businesses, the Profit First model is a great way to get started on the right foot. Simply put, you’ll have five checking accounts – I know it seems …
Bookkeeping is not as simple as balancing a checkbook – nor should it be. Try this simple exercise: grab your personal checkbook, if you still use one. Now open it up and tell me how much you made in March… I’ll wait. Still, adding and searching? Are you adding your net income? What was your …
