Category: Bookkeeping

Typically you’d import the opening balances for your accounts, AR, AP, and inventory so that your chart of accounts is up to date. A chart of accounts will likely be as large and as complex as a company itself. An international corporation with several divisions may need thousands of accounts, whereas a small local retailer…

When it comes to calculating sales tax in Excel, it’s essential to be able to customize the formula to fit your specific needs. Whether you’re dealing with different tax rates or incorporating additional variables, being able to modify the formula is crucial for accurate calculations. Value-added tax (VAT) systems levy consumption taxes on goods and…

This flexibility allows stores to adjust pricing at the item level to help them balance their margins while maximizing sales. Cash discounting is an old tactic, perhaps best known for use in gas stations. Almost every gas station displays a “cash price” and a “card price,” but you don’t need to display both. Instead, all…

You will need to let the bank know which account to deposit the funds or if you prefer cash. To void a check, simply write the word “VOID” over the area where you would normally fill in all the information. Be careful not to write over those important bank numbers at the bottom of what…

Although overall, it’s great for daily accounting, inventory keeping, and project management. We recommend it for project- and product-based companies because of its flexible features. Xero and QuickBooks—two of our best small business accounting software programs—are tight competitors in the United States accounting software market. The tool also lets you adjust the time frame to…

The fund’s strategy of balancing risk with consistent returns, particularly in a fluctuating market environment, positions it favorably for investors seeking stability and income. Additionally, its focus on high-quality bonds and strategic asset allocation contributes to its appeal as a resilient investment choice in the face of economic uncertainties. However, it’s essential to consider individual…

A great way to market your business is to create a website, which is considered your online home base. This is your greatest digital asset―one where customers can learn about your products or services. Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running…

The company originally paid $4,000 for the asset and has claimed $1,000 of depreciation expense. So, we could say that debits and credits do not by themselves reflects the increases or decreases. Hence, we need to refer to the specific account to determine if the debit or credit show an increase or decrease. To know…

To determine this, one needs to identify the type of negative cash flow that they are facing. Young companies are likely to report negative free cash flow due to constant reinvestments to finance growth. Such negative free cash flow is good if these reinvestments accelerate revenue and increase margins in the near future. A negative…

However, it distorts revenue and outstanding amounts for the invoice’s accounting period, as well as bad debts. Under the allowance method, a company needs to review their accounts receivable (unpaid invoices) and estimate what amount they won’t be able to collect. This estimated amount is then debited from the account Bad Debts Expense and credited…