Category: Bookkeeping – Regular Business Activity
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Bookkeeping – Introduction to Depreciation (Lesson 50)
Depreciation is the process of allocating the initial capital outlay for fixed asset purchases over time to the income statement. The basic principle with depreciation is that any fixed asset has a predetermined lifetime based on time, usage or fair market value.
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Bookkeeping – Fixed Asset Purchases (Lesson 49)
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.
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Bookkeeping – Controlling Cash (Lesson 48)
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, the expansion of accounts receivable is the economic equivalent of lending cash.
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Bookkeeping – Bank Reconciliations (Lesson 47)
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, reconciling the bank account is a daily task.
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Bookkeeping – Tracking Cash (Lesson 46)
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 existing cash is earmarked for certain items.
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Bookkeeping – Cash Disbursements (Lesson 45)
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.
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Bookkeeping – Petty Cash (Lesson 44)
Petty cash is cash kept in the office in a lockbox or with staff for instant and emergency purposes. It is actual cash and not checks.
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Bookkeeping – Accounts Payable Management (Lesson 43)
With small business, the biggest heartache for the bookkeeper is addressing the daily phone calls and letters (bills, statements and notices) related to purchases. Vendors regularly communicate with the accounts payable manager wanting to know payment cycles and status of their respective account.
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Bookkeeping – Purchases Via Credit Cards (Lesson 42)
It is more common in small business, especially small contractors, to buy materials using credit cards. Often the credit card accounts are the owner’s personal accounts.
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Bookkeeping – Tracking Purchases (Lesson 41)
In business purchases describes the process of acquiring the necessary goods and materials for operations.