Every bookkeeper needs to understand how to process a payroll. This is one of the many regular tasks in the bookkeeping cycle. In this lesson I’m going to illustrate a payroll structure as it pertains to the chart of accounts. But prior to illustrating a payroll structure a bookkeeper needs to understand...
Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI). I find this laughable in our modern economic times given the low cost of financing. For well qualified individuals, money can be borrowed at less than 6% …
Job descriptions act as the framework for the relationship between the employer and employee. It is the starting point for the human resources officer in addressing proper matching of needs and resources. If properly written the description acts as reference material for recruiting the best candidate, gauges job performance, identifies the career path...
The bookkeeping cycle is like a huge giant clock with several dozen gears from a multiple cog gear rotating the most frequently turning cog cascading into the one large gear that once turned changes the timer one year forward. The bookkeeper’s job is to make all the gears click and keep the system lubricated....
After having read the first 27 lessons and if you feel that you have grasped the concepts conveyed; then you are more qualified than most bookkeepers. There really is no undergraduate degree program for bookkeeping. So nobody has a college diploma from an accredited institution for bookkeeping; accounting yes, bookkeeping no. There are …
Bookkeeping – You are a Bookkeeper Now (Lesson 28) Read More »
QuickBooks by Intuit is by far the best all around accounting software for small business. Intuit even creates industry specific versions of QuickBooks. I personally endorse the Pro version due to the payroll feature and class accounting abilities. There are multiple positive benefits of QuickBooks for the business and directly for the bookkeeper too. …
In the previous 25 lessons I covered a lot of different terms and this lesson is merely a summary of the various terms a bookkeeper encounters. (Lesson 1) Account types – There are six major sets of accounts; three (assets, liabilities, equity) used with the balance sheet and three (revenue, cost of sales, expenses) found …
Generally Accepted Accounting Principles (GAAP) advocates using the accrual basis of accounting over cash basis. The difference between the two methods is important to understand as a bookkeeper. In general, cash basis focuses on the bank account, entries are only made whenever there is any form of an economic impact on the business. …
The accounting equation is a simple formula used frequently in business. The formula is: Assets = Liabilities plus Equity OR Equity = Assets minus Liabilities The owner is interested in increasing the equity position as this is his wealth in the business. There are only two ways to increase the equity value. One …
Bookkeeping – The Accounting Equation (Lesson 24) Read More »
In accounting there are books (journals) and ledgers for source entry of information. A trial balance is used to monitor the types of accounts. With the use of parent-child accounts and control accounts bookkeepers can generate a wide array of reports. Unfortunately this still lacks the breath of supporting information needed. So …
