Eventually, most small businesses will need to hire a bookkeeper and accountant. If you are struggling to keep up with daily transactions like invoicing customers and paying bills, you need to hire a bookkeeper. If you’ve got daily tasks under control but need someone who can interpret financial statements, it’s time to hire an accountant….
All Business Accounting Articles - Page 2
Free Invoice Template for Excel, PDF & Word
An invoice is a customer’s bill for a sale after goods or services have been delivered but before payment has been made. Accounting software is the best way to create and send an invoice but typically costs a monthly fee. To help, we have a free, downloadable free invoice template in Excel, PDF, and Word….
What Are the Best Invoice Payment Terms for Your Small Business?
Choosing the wrong invoice terms can disrupt your cash flow and alienate customers. However, for an entrepreneur just starting out, it can be difficult to know what terms to set to get paid faster and establish positive relationships with your customers. Your industry and client history are key components in choosing the right invoice terms….
Understanding Early Payment Discounts on Invoices
An early payment discount (also called a prompt payment or cash discount) is a reduction in an invoice balance when it’s paid before the due date. A common discount is 2/10 – net 30, which means buyers can earn a 2% discount by paying in 10 days. A $500 invoice would be discounted to $490….
Small Business Bookkeeping, Accounting & Tax Guide
Small business bookkeeping consists of recording your business’ daily transactions. This includes sales, expenses, inventory purchases, and liabilities that you incur. If you’re first starting out with small business accounting, you will most likely do the books yourself and hand them over each year to a tax professional who will prepare your tax return. How…
Top 25 Bookkeeping Tips From the Pros
A solid bookkeeping system is an essential aspect of running a business. No matter how small your business is, you should make sure that your books are updated, accurate, and readily available, as it provides you with crucial information on your business’ financial standing. Check out these expert bookkeeping tips to help you along the…
14 Best Free Time Tracking Software Options 2019
Learning how to properly bill time can be a tricky concept to master. In this guide, we uncover the 14 best free time-tracking software options that can ensure accurate billing to your customers, or accurate payment to employees/contractors who have performed the work. These provide a great alternative to manual time sheets and will work…
What Is Amortization?
Amortization is an accounting technique that is used to lower the cost value of a finite life or intangible asset through scheduled, incremental charges to income. Like depreciation, amortization spreads the charges out across multiple years so that the costs may be set against the revenues of several years rather than all in one year….
How to Do Payroll Accounting: A Step-by-Step Guide
Payroll accounting is the act of recording employee compensation, keeping track of money withheld from employees’ paychecks, and calculating the employee and employer share of taxes and benefits. You can accomplish this in five easy steps: prepare to hire employees, gather key employee documents, calculate and record paychecks, file and pay taxes on time. Here…
Car Depreciation: How to Calculate Your Vehicle Depreciation Deduction
Entrepreneurs who drive cars, trucks, vans, or SUVs for business can deduct part of the vehicle purchase price from their taxes. The purchase price is typically deducted over one to five years using a process called depreciation. Three methods for calculating car depreciation are the special depreciation allowance, modified accelerated cost recovery system (MACRS) depreciation,…
How to Account for Employee Expenses [+Free Expense Report Templates]
Employee expenses on your books are business expenses an employee pays for with their own personal funds or a corporate card and reimbursed later by the employer. The most common expense reimbursements are for airfare, hotel and meals. A written expense policy and a standardized expense report template will save time and help keep employees…
Bank Reconciliation: What It Is, How It Works & Examples
The bank reconciliation process involves matching the balance in your books for a cash account to your bank statement. Bank reconciliation is important because if there is a discrepancy, you need to find the cause and make an adjustment to your books so that your financial statements are accurate. In this article, we will explain…