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As a supplement to the general ledger, your chart of accounts lists the account names and purposes of all your sub-ledgers. While the above accounts appear in every general ledger, other accounts may be used to track special categories, perform useful calculations and summarize groups of accounts. For example, cash and account receivables are part [...]

The journal entry to record the purchase of a fixed asset (assuming that a note payable is used for financing and not a short-term account payable) is shown here. If you decide to use units of production depreciation, keep in mind that your tax preparer will still make a separate depreciation calculation for tax purposes. [...]

If you have at least 2 months of data in QuickBooks, there’s a flat fee for cleanup and setup for the first month of service. After the first month, pricing for QuickBooks Live Bookkeeping is based on your company’s average expenses in QuickBooks. Every three months, QuickBooks Live Bookkeeping automatically adjusts to the needs of [...]

However, the bank service charge of $10 in our bank statement doesn’t appear in our check register. The bank service charge is erroneously omitted from the books, so it should be added to the check register. The checks reported in the bank statement above pertain to vendor checks that Paul’s Plumbing issued. The vendors deposited [...]

She worked in finance for several years before moving into positions in real estate, including financing, investing, construction and operations. With that well-rounded background, she joined Potomac Construction Services in 2012. We work with contractors and other new business owners to select the structure that will limit your taxes owed at the end of the [...]

With many aspects of finance and accounting fitting the bill as transactional and/or rules-based, such jobs lend themselves to outsourcing and, in turn, ease the pressure on small and medium-sized businesses. However, they usually offer some “assurances” that solo bookkeepers can’t. And, in the event that someone handling your books has to take a leave [...]

Payroll co-sourcing is a type of payroll outsourcing in which a third-party payroll provider and employees of the business share payroll processing responsibilities. That way, a small business is getting the best of both worlds, allowing them to selectively decide what aspects of payroll they do themselves and which they’d rather have done by the [...]

For example, you may have estimated certain invoices that are later solidified with an actual number. Though often confused for each finance panel weighs uses for arpa funding other, there are key differences between bookkeeping and accounting. At its core, bookkeeping is about recording financial data, while accounting is about interpreting financial data. You have [...]

Comprehensive income excludes owner-caused changes in equity, such as the sale of stock or purchase of Treasury shares. Income excluded from the income statement is reported under "accumulated other comprehensive income" of the shareholders' equity section. A smaller business with relatively simple operations may not have engaged in any of the transactions that normally appear [...]

To account for accrued revenues, an adjusting entry is made to recognize the income in the period it was earned, rather than when cash is received. This involves debiting an asset account, such as Accounts Receivable, and crediting a revenue account. By doing so, the financial statements reflect the true revenue generated during the period, [...]