New business owners are naturally excited about getting up and running. If you’re a new business owner, then kudos to you. You’re doing the hard work necessary to put yourself and your family on better financial footing. But along with the enthusiasm for your new business comes the possibility that you will make mistakes. Minimizing […]
Accounting
Bookkeeping vs. Accounting
Accurate and complete financial records are essential to the success of any business. Bookkeeping and accounting are two processes business owners rely on to track and understand their finances. Actually, the line between bookkeeping and accounting processes is becoming blurrier all the time. Technological advances in hardware and software have automated many of the traditional […]
3 Financial Statements Companies Need to Understand
There are three financial statements that every company needs to understand, review and produce, on an annual basis, at a minimum. These consist of the Profit and Loss statement (P&L), Balance Sheet (BASH) and the Cash Flow statement. The profit and loss statement, also commonly known as the income statement, shows the changes in the […]
What’s the Difference Between Cash Accounting and Accrual Accounting?
When businesses are formed and start filing taxes, they must pick a specific accounting method. Businesses generally choose between the cash accounting method (also called cash basis accounting) and the accrual accounting method (also called accrual basis accounting). Once a business chooses its accounting method, it has to use this accounting method for all years going forward. […]
4 Classes Every New Entrepreneur Should Take
Being a successful entrepreneur takes plenty of intelligence, creativity, and daring. For some, it’s a role that they seem born to play. For others, it’s an uphill climb full of bumps and bruises, each with its own corresponding lesson in business. Either way, the one thing that’s certain is that the journey of an entrepreneur […]
Cash Versus Accrual Under the Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act of 2017 has led to changes in the way companies choose to be taxed. Prior to the tax reform, many businesses were required to use the accrual method of accounting. But with the change in tax law, businesses with $25 million or less in annual revenue over the prior […]
Best Smart Apps for Successful Small Business Owners
Running a business can be hectic. Using technology can be useful and assist in day-to-day operations. The first step in integrating technology the right way is in knowing which apps work best in helping accomplish what needs to be done. Here is a quick list of some that helps make tasks a little bit easier: Accounting Apps No business […]
Don’t Forget These 4 Essentials for Efficient Cash Flow Forecasting
A businesses cash flow forecast can help businesses to predict the profitability of the business to help pay for outgoings and plan for the future. It’s a vital financial tool that can help to understand business performance and meet costs. Whilst it can be relatively straight forward to put together, cash flow forecasting can also […]
Understanding What a Bookkeeper Does
If you own or manage a small business, you may worry so much about certain financial issues that you have trouble sleeping at night. Some of these issues might include lost receipts, not getting paid for products or services, not knowing where your business stands financially, or being audited by the IRS. Fortunately, help is […]
Bookkeeping vs. Accounting
If you own or manage a small business, you know the importance of accurate financial records. You also know that your business success often depends on having a clear financial path forward. Bookkeeping and accounting are two processes businesses rely on to accomplish these goals. Some business owners take on bookkeeping and accounting tasks themselves. […]
