Bookkeeping Advice Archives - Page 4 of 10

Posting Payroll Entries – Part 1

This series of blogs will look into the various ways you can recognize your payroll costs in your bookkeeping platform. If you subscribe to a separate 3rd party payroll provider that is NOT integrated into your bookkeeping platform, then you will have to post the payroll expenses into your financials yourself. There are certainly different

Chart of Accounts Setup – Part 3

In part 3 of these series regarding the Chart of Accounts setup, I will delve into thinking about the various ways you can recognize Direct Costs in your Chart of Accounts. Direct Costs (also can be known as Cost of Goods Sold or Cost of Services) can be recognized based strictly on what you are

Reconciling a Paypal Account

If you are constantly using a Paypal payment account to transact both payments from customers and payments to vendors, then you should be treating your Paypal payment account just like a typical bank account in your bookkeeping files. I would recommend that you complete a reconciliation of this account at least on a monthly basis

Chart of Accounts Setup – Part 2

In part 2 of these series regarding the Chart of Accounts setup, I will delve into thinking about the various ways you can recognize income in your Chart of Accounts. Income (or revenues or sales) can be recognized based strictly on what you are selling, or you can just have on income account called “Sales”

Chart of Accounts Setup – Part 1

When creating your bookkeeping platform for the first time (or re-organizing it), the first thing to decide on is what you want your basic Balance Sheet and Income Statement financial reports to tell you. This is where you want to have a proper Chart of Accounts set up in your platform. The Chart of Accounts

Basic Balance Sheet Report Red Flags

If you are a small business owner and are actually reviewing your business financial reports from time to time, here are some tips to help see potential dangers on your Balance Sheet (Assets, Liabilities & Equity) report: Negative Account Balances Unless you have an Accumulated Depreciation asset type of account, you may want to closely

Basic Income Statement Report Red Flags

If you are a small business owner and are actually reviewing your business financial reports from time to time, here are some tips to help see potential dangers on your Income Statement (Profit & Loss) report: Negative Account Balances Negative account balances on your Income Statement (Profit & Loss) means perhaps this particular account is

1099 Advice – Part 2

Part 2 of this 1099 Advice series continues to explore some other possible tasks to consider in preparation for the 1099 season for the small business owner. Keep in mind to never take the 1099 obligations lightly because, like payroll tax forms, your small business is declaring payments to other entities. So here are

1099 Advice – Part 1

1099 season always seems like it is just right around the corner. Here is an article that can provide you with some ideas to think about prior to this season. As a small business owner, your time probably is in high demand each day, week and month due to all of the different types of

Do you need to hire a Bookkeeper?

This article may help you address some issues and/or questions in your overall decision to hire a bookkeeper to assist with your small business financial reporting needs. In my opinion, there are two main reasons why a small business owner could consider hiring an outsourced bookkeeper to provide ongoing maintenance of the books: The owner