Category: Bookkeeping

In this case, your assets usually represent your initial investment, the starting capital of the business. You might also have a business loan to help you kick-start your operation and the supplies. The final step of this journey is to create equity accounts and assign balances to them. Next, you might want to create your… Continue reading Opening Entry In Accounting

All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track income and expenses. Most accounting software providers offer free trials, so you can try out the software before you commit to it. Many also offer free tutorials and support, so you can get help when you need it.… Continue reading 9 Best Online Bookkeeping Services 2024

The bookkeeping transactions can be recorded by hand in a journal or using a spreadsheet program like Microsoft Excel. Most businesses now use specialized bookkeeping computer programs to keep books that show their financial transactions. Bookkeepers can use either single-entry or double-entry bookkeeping to record financial transactions. Double-entry vs. Single-entry Bookkeeping Bookkeepers have to understand… Continue reading Types of Bookkeeping: Single Entry vs Double Entry

The accounting rate of return (ARR) is a simple formula that allows investors and managers to determine the profitability of an asset or project. Because of its ease of use and determination of profitability, it is a handy tool to compare the profitability of various projects. However, the formula does not consider the cash flows… Continue reading Accounting Rate of Return ARR Formula Examples

It helps you get approved for a credit card, mortgage, car loan, and so on and minimizes the interest rate you pay. It’s important to know your credit score at any given time, how it is calculated, and what you can do to improve it. It’s hard to imagine a family with kids that wouldn’t… Continue reading The Fundamentals of Personal Finance Specialization SoFi

Notes payable are written agreements (promissory notes) in which one party agrees to pay the other party a certain amount of cash. We now consider two short-term notes payable situations; one is created by a purchase, and the other is created by a loan. One problem with issuing notes payable is that it gives the… Continue reading Notes payable explanation, journal entries, format, classification and examples

Asking for audited financial statements for the issuer of financial instruments is another very basic due diligence technique. Real investments will have audited financial statements from large and reputable accounting firms. Scam investments, by contrast, will either not have audited financial statements or the auditor will be —as with Bernie Madoff — some guy working… Continue reading Gross Profit Overview, Formula, Revenue, Margin

While accountants do a good job of giving strategic advice, solving tax issues and filing for annual returns, they don’t overlook your accounts on a regular basis. However, a good bookkeeper keeps a close eye on your accounts every day. As a result, your cash flow is kept under control, which is crucial for business… Continue reading How to Hire the Right Bookkeeper for Your Business