Everyone talks about how bookkeeping is a great way to prepare for taxes. That’s the first thing people think of when they think of “bookkeeping”. Ok, true. Having sound accurate up-to-date books certainly gives you a leg up for tax time. Having a valid Profit & Loss statement gives the accountant information that will streamline …
Greetings, esteemed finance enthusiasts! Today, let’s discuss something that might initially appear counterintuitive to some: why income is actually a credit. I know, I know, it sounds peculiar, but do bear with me! First, let’s establish a definition of “income.” Income, in finance, refers to any financial gains you receive from various sources, such as …
Building a client’s banking is usually the first step, then getting the preliminary forecast constructed. Next, reviewing the Chart of Accounts in the bookkeeping software to ensure that all reimbursable and deductions are captured, then looking at receivables followed by payables. Reconcile every previous month’s account, including the Paypal, Stripe or Venmo accounts you may …
5 Biggest Bookkeeping Mistakes & Tips to Avoid Them Read More »
Are you tired of boring bookkeeping practices? Well, have no fear because the golden rule of bookkeeping is here to spice up your financial record-keeping game. Introducing: double-entry bookkeeping. You might be thinking, “Double the work? No thank you.” But hold on, because double-entry bookkeeping is actually like having a built-in fact-checker for your financial …
The Golden Rule of Bookkeeping: Double-Entry or Double the Fun? Read More »
Let’s start with the basics. Picture a faucet over your kitchen sink. It’s running, not full force, not a trickle. That’s your cash flow. Your sink also has a drain at the bottom, perhaps a drain catch. Sometimes that drain catch is completely blocking the water from draining, sometimes it doesn’t black it all, and …
Bookkeeping is not hard. Tedious maybe, time-consuming, yes. However, if one does small routines over time, big things happen. One such advantage is the little time it takes to wrap your books for the year. Books that have been kept all year with weekly, monthly, and quarterly tasks require very little for year-end processing. Typically, …
July 18, 2021 With more of my clients (finally) going out of town on a vacation instead of the “stayations” of 2020, they are taking an opportunity to separate from their business. This is not only well-deserved, but it is also necessary. As owners, work-life balance is crucial; it is too easy to eat, sleep …
The real question is which is most appropriate to your business! Both have value in the right situation. Cash basis accounting is best used for personal finance and microbusinesses. This is the method that chronicles transactions as they occur. No invoices are recorded until they are paid, no bills are documented until the money is …
June 22, 2021 If you are the owner of a roofing company, chances are you didn’t start the company so you could manage your own books. There are some things to consider when hiring a bookkeeper, if you don’t already have one. Taxes and Legal Information All businesses have taxes, and this is one of …
By Profit & Equity, LLC June 13, 2021 You know what you know. Because you can look at a receipt and immediately remember that you got a check from Sally Service, doesn’t mean you remember that you forgot to enter the payment on the invoice. Later you remember getting the check from Sally as you …
