Category Archives: Bookkeeping

Operating activities include generating and spending cash for business activities. Businesses consider receipts from sales of goods, bank account interest, payments made to vendors, and wages paid to employees as operating activities. Like revenue, expenses include costs accrued through primary … Continue reading →

Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. Finance Strategists is a leading financial education organization that connects people with financial professionals, priding itself on providing accurate and reliable financial … Continue reading →

The company would record the expense in December and create a reversing journal entry for January to correct the error. This would ensure that the expense is not recorded twice in the financial records. Reversing journal entries have a significant … Continue reading →

Most of the information on this form is very basic and could be found relatively easily. In fact, most of the time these forms are filled out for the buyer via the closing process. However a licensed CPA can be … Continue reading →

Self-employed taxpayers who performed freelance work, or had a side gig that earned more than $600 in income, may receive a 1099–NEC form. However, non-employee income could also include fees, benefits, commissions, and royalties. Payments to an attorney that exceeded … Continue reading →

They are recorded as liabilities, reflecting the future service obligation. As the service (like property rental) is provided, this liability is reduced, and revenue is recognized. Regular reviews ensure that unearned revenues are correctly accounted for. Furthermore, clear protocols can … Continue reading →

This option is best if you have some idea of your costs but don’t have exact numbers. This information can help you make decisions about where to cut costs or how to allocate your resources more efficiently. A good rule … Continue reading →

A company can experience cash flow shortfalls when its short-term debts (or bills) exceed the revenue being generated from sales. If a company has a significant portion of its sales done via accounts receivables, the money collected from the receivables … Continue reading →

Customers of QuickBooks can also make the most of the many integrated tools and services that come with the software. Some worth noting are inventory management and time-tracking. While QuickBooks is the favorite of many small businesses, it may not … Continue reading →

We’re here to help simplify things for you with this guide on how to create an accounting system for a small business. Chances are, you’ll be better suited to complete third-party management. This is an investment in your business that … Continue reading →