Bookkeeping Advice Archives - Page 2 of 13

Bank Reconciliation Discrepancies

This article deals with bookkeeping reconciliation discrepancies with your bank account. Normally, when you are trying to match a bank account balance to the associated bank account balance in your books, you should be able to match each and every transaction that had occurred within a certain time period. The more often you complete a

Deferred Income

This article deals with the concept of Deferred Income and how to simply convert to regular, or earned, income in your bookkeeping using a journal entry. Deferred Income is simply monies you have received in advance of performing your obligations to earn that income. These obligations can be providing a service or shipping of products

Construction Escrow Disbursed Funds Accrued

This article continues the series of blogs regarding Construction Escrow Accounts. As per the most recent blog about this topic, I will be discussing one popular way in which a Construction Escrow account can be accounting for in your bookkeeping. As stated previously, Construction Escrow funds are disbursed (drawn) only upon request, like a Line

Different Ways to Deal with Construction Escrow Accounts in your Bookkeeping – Part 1

This article deals with Construction Escrow Accounts. A construction escrow account can be viewed similar to a line of credit. A lender loans to you a bulk sum of money, however this money is not disbursed to you all at once. Instead, you must submit periodic requests (such as in monthly intervals) to obtain a

Opening Balance Equity Account

This article deals with the purpose and usage of an equity account called “Opening Balance Equity.” The Opening Balance Equity account is primarily going to be a bookkeeping software invention and thus is automatically created by a bookkeeping software (QuickBooks) whenever you begin a new company bookkeeping (accounting) file and begin posting banking and/or credit

Bookkeeping: If You Have Two Companies…Part 3

This article concludes the series dealing with if you are in a scenario where you are an entrepreneur and have two small business entities to maintain the bookkeeping for. As mentioned in the previous parts of this series, this is a rather common scenario and it is vital that you, as the owner of both

Bookkeeping: If You Have Two Companies…Part 2

This article continues the series dealing with if you are in a scenario where you are an entrepreneur and have two small business entities to maintain the bookkeeping for. As mentioned in Part 1 of this series, this is a rather common scenario and it is vital that you, as the owner of both of

Bookkeeping: If You Have Two Companies…Part 1

This article deals with if you are in a scenario where you are an entrepreneur and have two small business entities to maintain the bookkeeping for. This is a rather common scenario and it is vital that you, as the owner of both of these small businesses, understand simple do’s and don’ts when it comes

Spec Home – Lot Purchase

This article deals with your purchase of a Lot (Portion of Land) for the purposes of building a Spec Home (on it) in the near future. A Spec home’s building costs are typically going to be capitalized and converted to COGS upon sale of the completed build. However, the purchase of a Lot (Portion of

One Method to E-File 1099 Forms from your Desktop

This article deals with utilizing a spreadsheet-upload function to ultimately upload all of the 1099 data onto an independent 3rd party e-filing platform (online) so you can submit 1099 forms to both the IRS and your contractors. This article does NOT refer to uploading data directly onto the IRS FIRE system to submit your 1099