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Basic Bookkeeping for Your Small Business
Bookkeeping refers mainly to the record-keeping aspects of accounting. Bookkeeping is essentially the accounting process (some would say the drudgery) of recording all the information regarding the transactions [more…]
Making Accounting Adjustments to Reach Profit Potential
Having your business reach a profit is important; if it doesn’t, sooner or later the business will fail. As a business manager, you want to keep a close eye on the financial statements and make the necessary [more…]
Bookkeeping Checklist
This step-by-step bookkeeping checklist should help you sleep easy at night, knowing that you have done what you needed to do to get your books in tip-top shape. [more…]
Bookkeeping Basic: Understanding Account Types
Understanding the difference between account types is the secret to coding transactions correctly. Here’s the cheat’s guide to understanding the difference between assets and liabilities, equity and income [more…]
Bookkeeping Ways to Value Your Stock
Bookkeepers use various methods for valuing stock. Your company must choose one method and follow that method all the time, in order to keep the tax man happy. Four ways in which you can do this are: [more…]
Classifications of Business Transactions
In understanding accounting, you need to be very clear about which classification of business transaction you’re looking at. Businesses are profit-motivated, so one basic type of transaction is obvious [more…]
The Three Types of Sales Transactions
The effect that making a sale has on a business’s financial condition depends on the type of sales transaction that's made — that is, when the cash is collected from the sale When a business sells a product [more…]
Keeping the Accounting Equation in Balance
The accounting equation used in business must always be kept in balance — the assets on one side of the equation must equal the claims against the assets on the other side: [more…]
How to Adjust for General Ledger Errors
The bookkeeping entries that you make in a General Ledger aren’t cast in stone. If necessary, you can always change or correct any errors with what’s called an adjusting entry. [more…]
Recording Investing and Financing Transactions for a Business
Though few in number, investing and financing transactions for a business are important and usually involve big chunks of money. The investing and financing transactions are reported in the statement of [more…]
How to Choose the Right Bank for Your Business
Finding the right bank for your business, to help you set up your checking account and the controls that limit access to that account, is crucial. When evaluating your banking options, ask yourself the [more…]
Controlling Cash Register Transactions in Your Business
It’s important for businesses to carefully monitor the money in their cash registers and to maintain proper control of all cash register transactions. Have you ever gone into a business and tried to pay [more…]
Maintaining Proper Paperwork for a Business’s Cash Transactions
When it comes to handling cash transactions in your business, a lot of paperwork changes hands. In order to properly control the movement of cash into and out of your business, careful documentation is [more…]
Basic Types of Financial Fraud in Businesses
Too often, a business owner finds out too late that even the most loyal employee may commit financial fraud and steal from the company if the opportunity arises and the temptation becomes too great — or [more…]
How to Prevent Internal Fraud: Dividing Staff Responsibilities
Your primary protection against internal fraud in your business is properly dividing staff responsibilities when the flow of business cash is involved. Many business people start their operations by carefully [more…]
Balancing Control Costs of Protecting Business Cash and Assets
As a small business owner, you’ll always be trying to balance the cost of protecting your cash and assets with the cost of adequately separating those duties. It can be a big mistake to put in too many [more…]
Insuring Business Cash Accounts through Employee Bonding
If you have employees who handle cash, insuring your business against theft through employee bonding is an absolute must. This insurance, called fidelity bonds [more…]
How to Record a Business’s Unpaid Expenses
Neglecting to record your unpaid expenses can lead to accounting confusion. A typical business pays many expenses after the period in which the expenses are recorded — these are called [more…]
Set-Up and Follow-Up Transactions for Revenue and Expenses
Set-up and follow-up transactions are supporting transactions for the profit-making activities of a business that take place before or after revenue and expenses are recorded. These set-up and follow-up [more…]
Getting Started with Accounting Software
After you choose the accounting software you want to use in your business, the hard work is done because actually setting up the accounting software will probably take you less time than researching your [more…]
Accounting: Examining Both Sides of Business Transactions
The accountant’s job is to capture all the transactions of the business, determine the financial effects of every transaction, record every transaction in the business’s accounts, and from the accounts [more…]
How to Develop Entries for the General Ledger
Because your business’s bookkeeping transactions are first entered into journals, you develop many of the entries for the General Ledger based on information pulled from the appropriate journal. [more…]
How to Post Entries to the General Ledger
After you summarize the journals for your business and develop the entries you need for the General Ledger, you post your entries into the General Ledger accounts. When posting to the General Ledger, include [more…]
Using the General Ledger in Computerized Accounting Software
If you keep your books by using a computerized accounting system, posting to the General Ledger is actually done behind the scenes by your accounting software. You can view your transactions right on the [more…]
Tracking Incoming Cash with the Cash Receipts Journal
The Cash Receipts journal is the first place you record incoming cash for your business. The majority of cash received each day comes from daily sales; other possible sources of cash include deposits of [more…]
