Recent Articles

New Articles

Bookkeeping – Depreciation Schedules (Lesson 51)

03/19/2017

When a small business purchases fixed assets two financially based opposing forces come into play.  The first is the financial reporting desire to present information in a fair manner so management can make good financial decisions.  The opposing [...]

Bookkeeping – Introduction to Depreciation (Lesson 50)

03/12/2017

Depreciation is the process of allocating the initial capital outlay for fixed asset purchases over time to the income statement.   The basic principle is that any fixed asset has a predetermined lifetime based on time, usage or fair market value. [...]

Bookkeeping – Fixed Asset Purchases (Lesson 49)

03/05/2017

Every now and then management authorizes the purchase of a long-term producing asset.  This could be a vehicle, piece of equipment or real estate.  These purchases are referred to as fixed assets.  Recording of these entries is a little different [...]

Bookkeeping – Controlling Cash (Lesson 48)

03/05/2017

In small business, cash is almost always the number one issue.  There is simply never enough.  This is primarily attributable to growth.  Growth requires both physical assets to produce more and expansion of accounts receivable.  Technically [...]

Bookkeeping – Bank Reconciliations (Lesson 47)

03/03/2017

An essential task of bookkeeping is making sure the ledger accounts for cash reconcile to the bank.   Your average person believes that this is a monthly task.    Well in the private world, this may be true.   But in small business, this is a [...]

Bookkeeping – Tracking Cash (Lesson 46)

02/24/2017

Of all the assets in business cash is the most valuable and coveted.   Keeping track of how much is available and where it goes is the responsibility of the bookkeeper.   Often owners have no idea of how much they really have nor how much of the [...]

Current Ratio

02/22/2017

The current ratio is an inappropriate relationship to use or rely on in small business.   The ratio is best suited for large publicly traded organizations.   This article explains the basic formula for the current ratio, how to identify the ratio [...]

Bookkeeping – Cash Disbursements (Lesson 45)

02/20/2017

Cash disbursements is the process of remitting payment to vendors, suppliers and third party contractual obligations.   Better managed offices pay bills in regular cycles including weekly and monthly obligations.   Preparation, reconciliation and [...]

Working Trial Balance

02/18/2017

The accounting profession uses various tools to generate accurate accounting information at the close of accounting cycles (monthly, quarterly and annually). The primary document is the working trial balance.  It is very similar to the traitional [...]
1 2 3 4 5 41