An accounting cycle looks back in time at the end of a designated period (e.g., monthly, quarterly, or annually). There are several steps in the cycle, beginning when a transaction occurs and ending when you close your books. The second step in the c... Read more
It looks a lot like yours, but I failed to break Travel out of the Cash (a.k.a. miscellaneous) category. Jonathon, does the savings category include pre-tax retirement savings (e.g. 401k)? I know you said you were stashing cash for a house purchase b... Read more
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.Deter... Read more
There are periodic adjustments to the account that started at the time the business was initially formed. Your net profit for year 20XZ is $175,000 and you owe $75,000 in dividends to your shareholders. This may influence which products we review and... Read more
However, as you know, small business owners often have a constant flood of satisfying milestones, coupled with expanding to-do lists. With your launch, you’ll need to get on top of the accounting tasks that come along with owning a store. The o... Read more
Although they all roll up into the umbrella of accounting, bookkeeping, payroll, tax preparation, and financial reporting are actually all very different functions. Worse yet, as an owner, you might even be tempted to just tack on your payroll or acc... Read more
Great accountants end up saving you a lot of money in taxes due to their in-depth knowledge about the tax laws. Having the best technology won’t help unless your bookkeepers know how to use them efficiently. So, invest time and find the right p... Read more
When selecting this option, you are given access to a personal Account Manager and customized training in the use of FreshBooks. There is also cross-integration between this platform and QuickBooks and Xero. The lowest is the “Simple Start&rdqu... Read more
Operating income looks at profit after deducting operating expenses such as wages, depreciation, and cost of goods sold. Administrative expenses are the costs an organization incurs not directly tied to a specific function such as manufacturing, prod... Read more
This is a form of cash basis accounting and is most commonly found in installment sales. The revenue recognition principle is a key component of accrual-basis accounting. This accounting method recognizes the revenue once it is considered earned, unl... Read more
