Category: Bookkeeping

If you’re having trouble tracking your income and expenses, a bookkeeper can help you get organized and improve your cash flow. At the end of the accounting period, take the time to make adjustments to your entries. For example, you may have estimated certain invoices that are later solidified with an actual number. If your… Continue reading 16 Areas Solopreneurs Need To Hire For Or Outsource As Soon As Possible

However, businesses with internal accounting cycles also follow the external accounting cycle of the fiscal year. The accounting cycle is a critical part of running a business because it provides a way to comprehensively understand how a business is performing. When bookkeepers break down complex financial information into clear categories and step-by-step calculations, they can… Continue reading Steps Flow Chart Example How to Use Explanation

To figure cost depletion, you must first determine the following. If you have an economic interest in mineral property or standing timber, you can take a deduction for depletion. More than one person can have an economic interest in the same mineral deposit or timber. For comparison, consider the purchase of inventory, which is cycled… Continue reading The difference between expensing and capitalizing

Although it may seem quite simple, this record-keeping tool can be a powerful asset for your business. The cash receipts journal is where all cash receipts, which could be payments from customers for the service or product that you sell, are recorded. My Accounting Course  is a world-class educational resource developed by experts to simplify… Continue reading What is a General Journal? Definition Meaning Example

Please review its terms, privacy and security policies to see how they apply to you. Chase isn’t responsible for (and doesn’t provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the Chase name. Some banks are international, meaning they have a presence in your… Continue reading How do I apply for an ITIN? Internal Revenue Service

The changes that will be made are to set the cash basis as the default method for small businesses, and remove the turnover, interest, and loss relief restrictions that currently apply to the cash basis. Read the ‘Expanding the Cash Basis Summary of Responses’ document for more information. It reconciles the beginning balance of net… Continue reading Retained Earnings Explained Definition, Formula, & Examples

Once your customer has decided to make the payment, they need to know which payment methods your business accepts, such as netbanking, check, cash, or card. If they choose to pay by cash or check, you will need to manually deposit it into your account. If they choose to pay by card, there is a possibility of the card being… Continue reading 6 Key Accounts Receivable Reports for Every Business

Account reconciliation is typically carried out by accountants during monthly and year-end financial closing processes. Alternatively, businesses may opt for real-time reconciliation using specialized automation software integrated with their ERP (Enterprise Resource Planning) system. This software not only automates the reconciliation process but also provides a helpful audit trail for reference. Reconciliation ensures that accounting… Continue reading What Is Account Reconciliation

However, if the preferred issue is called by the issuer, the investor will most likely be faced with the prospect of reinvesting the proceeds at a lower dividend or interest rate. These preferred shares are redeemed at the discretion of the issuing company, giving it the option to buy back the stock at any time… Continue reading Callable or Redeemable Bond Types, Example, Pros & Cons

The IRS doesn’t expect you, the taxpayer, to file the actual Schedule K-1 form. However, it does expect that you will include all the financial information on the K-1 that you were issued on your personal income tax return. The entity that issued you your K-1 will file that same form/info with the IRS. If… Continue reading Schedule K-1: Partner’s Share of Income, Deductions, Credits, etc