As a business owner with a set of “books”, you’ve probably come across this thing called the “Chart of accounts”. What is this, and why is it so critical to consider? So here’s the skinny: the chart of accounts is the literal backbone of your business bookkeeping. (Psst, your books are the backbone of your …
Simply: the secret to managing cash flow in a business. When a business takes every dollar that comes in and assigns it a job, amazing things start to happen. There are so many ways to do this, but that is not what this blog is about. What we get asked most is how to establish …
When it comes to managing our finances, taxes play a significant role in determining our overall financial health. As taxpayers, we often seek ways to minimize our tax liability legally. Two common strategies used to achieve this goal are capitalization and deduction. In this blog post, we will explore the differences between capitalization and deduction, …
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 …
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 …
Remember the old days when you could roll up to the local gas station and the attendant would not only pump your gas but also ask you to pop the hood, check your oil, and then wash your windshield? Ok, the Millennials out there are going, “Uh, no!”, but that’s what would happen at many …
Most micro businesses have never talked to a bookkeeper. Startups, even fewer. The fact is, starting your business on the correct financial footing will save you time and money, possibly more than you know. Are you still working off spreadsheets? For those of you working off a spreadsheet, there’s an easier way. Accounting systems are …
