Many small business owners consider hiring family members during the summer to help with seasonal tasks or to lighten the workload. Whether it’s a spouse, child, or other relative, there are important bookkeeping and tax considerations you need to understand before putting them on the payroll. Key Considerations: Legitimate Work and Reasonable Pay: Any family … Read more
Financial report terms can seem confusing if you’re just getting started. This glossary is designed to give beginners clear, practical definitions of the terms you’re most likely to come across when reviewing profit and loss statements, balance sheets, or cash flow reports. Comparative Report: A financial report that shows multiple time periods side by side to … Read more
Learning about online bookkeeping takes time, but careful study helps build your confidence and expertise. Here are a few simple steps to guide you as you begin using digital tools to track your finances. Following these steps can help you become familiar with the process and build practical experience. Each step helps connect the terminology … Read more
The Chart of Accounts (COA) is the backbone of your bookkeeping system. It organizes all the money coming in, going out, and staying within your business. Financial reports can be confusing, misleading, or even unusable without a properly structured COA. What is the Chart of Accounts? The Chart of Accounts lists all the accounts used … Read more
🔍 What to Do Before You Reconcile Your Accounts Reconciliation is more than a routine step in your bookkeeping process—it’s where small mistakes can turn into bigger reporting problems if you’re not careful. If your goal is accurate records and reliable reports, here’s what to check before hitting that “Reconcile” button: Skipping these steps can … Read more
Essential Online Bookkeeping Terms for Beginners Digital records are easier to update and share, and they offer automated tools to help track income and expenses. Therefore, having clear knowledge of the vocabulary makes these benefits more accessible and effective. Accounts Payable (AP): Money a business owes to suppliers or vendors for goods and services received but … Read more
Cash flow management involves monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses. This management is essential because it helps startups maintain enough liquidity to keep operations running smoothly without hitting any financial hiccups. Startups often face unique challenges when it comes to cash flow. They typically operate with tight budgets … Read more
Keeping your bookkeeping organized doesn’t have to be overwhelming, but it needs consistency. Setting aside time each week to handle a few essential tasks can prevent costly mistakes, missed deductions, and end-of-year chaos. Here are the core bookkeeping tasks every business should do weekly to stay on track. Review and Categorize Transactions Review all transactions … Read more
Keeping your books organized every month helps you avoid mistakes, stay on top of your finances, and be ready when tax time rolls around. Whether you’re just getting started with bookkeeping or looking to tighten up your current process, this checklist gives you the key tasks to cover each month to keep your business on … Read more