Bookkeeping Advice

Overhead vs. Cost of Goods Sold

When constructing your chart of accounts, it is usually a good idea to, at least, create two major categories of expenses: Overhead (Indirect Costs) Cost of Goods Sold (Direct Costs) Direct costs and indirect costs are differentiated in the following ways: Direct costs are spent because they are used to create revenues for your business:

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W2 Review

Each year I process W2 forms for employees, via AccuraBooks Full Service Payroll Solutions, for my clients. It seems like each year, I learn something new regarding what to review and watch out for prior to actually processing any payroll tax forms. So here are some basic things to watch out for prior to processing

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Match Deposits with Merchant Settlements

As a small business owner, if you accept credit or debit cards payments then you probably understand the convenience of simply charging your customer’s credit cards on file rather than wait on a check payment to settle accounts receivables. However, this convenience is not free of charge either, in that the credit card processor that

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Dealing with Uncategorized Transactions

Each time I reconcile a client’s bank or credit account, there are inevitably going to be transactions where I am not sure where to book them. Some examples of transactions where a bookkeeper may be unsure where to book them are: Amazon, Walmart, Target, Other E-Commerce purchases: Lots of different types of items can be

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Payroll Health Insurance Accounts

Offering Health Insurance benefits through your company payroll can be an attractive benefit to obtain and retain employees, however the bookkeeping for BOTH health insurance paycheck deductions and company contributions is something that has to be monitored quite continuously, even if your do not alter any wages during the year. This is because the cost

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Maintaining Loan Accounts

This article addresses the bookkeeping maintenance of a typical cash loan, mortgage or line of credit account. It does NOT address the maintenance of credit card accounts. Updating and reconciling a loan account is just as important as maintaining your bank and credit card accounts in your bookkeeping records. I say this because so many

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The Profit & Loss Value of Maintaining Accounts Receivables & Payables

When you process an overall company health financial statement such as the Profit & Loss or a Balance Sheet, you may find inaccurate balances due to the fact that your Accounts Receivables and Payables need attention. In my experience, it can be quite common to see a business owner disregard the value of each detailed

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The Value of Bank Reconciliations

Periodically reconciling all of your banking, credit card, lines of credit and even accounts that only accumulate accrued interest is always the first step in bookkeeping maintenance and ensuring your financial reports are accurate. I have seen too many times where the books (even the most complicated books) are maintained like clockwork with expertise, however

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Payroll Setup in your Chart of Accounts

Whether you are going to be integrating your payroll data from a 3rd party provider into your current bookkeeping platform or utilizing your own in-house payroll system, it is always a good idea to properly setup your corresponding liability and expense accounts in your chart of accounts AND periodically check the data and balances in all

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Tracking Expenditures Using Funds from the Paycheck Protection Program

If you have received moneys associated with the Paycheck Protection Program, it is probably a wise thing to invent a temporary bookkeeping system and process to distinguish all financial activities associated with/utilizing these funds from the rest of your bookkeeping system. That way there can be no doubt that you can prove your PPP expenses/activities

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