Bookkeeping-101

What exactly is the difference between accounting and bookkeeping? These two labels are sometimes used interchangeably, so it’s no wonder the matter can be confusing. Let’s briefly explore the two jobs to clarify their roles in business finance. Bookkeeping, for its..

One of an accountant’s basic goals is to keep accurate and useful records of financial transactions. Individuals, small firms, large corporations, and even whole countries faced with this task have two major methods from which to choose: the cash basis of..

The I-What?  Since 1986, the federal government has required employers to certify the identity and legal employment status of their workers. This is done by use of the Employment Eligibility Verification Form — or as you may know it, the I-9..

The words “bill” and “invoice” are often used interchangeably, but their meanings differ subtly. All invoices are bills, but not all bills are invoices.  What is a bill? A bill is a document that indicates how much a buyer owes to a seller. It..

Accounts receivable definition: “Accounts receivable” refers to money owed to you by your customers for goods or services that you have already provided to them. Your customers might be individuals, corporations, governments, or any other entity. If you’ve made a sale but haven’t gotten paid for it..

Accounts payable definition: Accounts payable are your company’s short-term debts. Short-term debts are those that must be paid off within 1 year. The definition above is the one I’ll use in this article. However, “accounts payable” (abbreviated “AP”) is also frequently used to refer to the department of..

Keeping track of cash flow is critical for every business owner in every industry. What is it? The basic concept is easy to understand. A cash flow is a movement of cash into or out of your business. Net cash flow..

What is it? A bank reconcilation is a process in which a company checks that both its records and the bank’s records are correct. ? Discrepancies between bank records and company records concerning cash transactions are very common and can result from errors made by..