Bookkeeping Advice Archives - Page 5 of 11

Posting Payroll Entries – Part 3

Part 3 of this series of payroll entry blogs will look into the payroll entries that can be posited to recognized unpaid payroll tax liabilities. If you process a payroll for your employees and you decide to wait until a later time to submit the corresponding tax payments to the appropriate tax agencies, then

Chart of Accounts Setup – Part 4

In part 4 of these series regarding the Chart of Accounts setup, I will delve into thinking about recognizing Overhead Expenses in your Chart of Accounts. Overhead costs, which are sometimes referred to as General Administrative or Indirect Costs, can be fixed in nature, such as rent and insurance, or can be purchases that have

Posting Payroll Entries – Part 2

Part 2 of this series of payroll entry blogs will look into how you can post manual payroll entries that recognize payroll-related 401(k) obligations. As a reminder, 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

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