What is a contra revenue account and why is it important to my small business bookkeeping?
If you are a small business owner and you sell a product, you likely have instances of returns/refunds on items or you may provide reductions for items that are defective or damaged. If you provide either a product or a service,..
Why should you pay attention to the retained earnings line on the balance sheet?
Your balance sheet is a snapshot of your business’s financial data at a specific point in time. It provides a detailed list of your assets, liabilities and the value of your shareholders’ equity. In short, it’s indicative of the overall financial..
How to use the Retained Earnings Formula to track the profits your business has earned and kept
As a small business owner, you’re focused on providing a profitable product or service and achieving business growth, meaning more cash for you now plus a higher sale price in the future. Having accurate financial data is a priority for long..
The Difference between Daybooks, Journals, Ledgers, and Other Record-Keeping Documents
Should you record the sale you just made in accounts receivable, your daybook, or a general ledger? All? None? You can document financial transactions in a number of different records. Read on to clear up the confusion on which is which...
How to meet your bookkeeping needs: employee, contractor, or firm?
Every business (and every nonprofit) needs bookkeeping services. There are a lot of options: you could hire a bookkeeper as an employee, contract the work out to an independent bookkeeper, work with a bookkeeping firm, or some combination of these options...
What’s the difference between accounting and bookkeeping?
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..
How to choose an accounting method for your business
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..
A rundown of the new I-9 form for 2017
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..
Bills vs. invoices: do you know the difference?
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..