Category: Business Principles
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Bookkeeping – Debits and Credits in Revenue Accounts (Lesson 6)
Revenue accounts are the most fun to watch as a bookkeeper. Revenue is the lifeblood for success. Without revenue, the company is doomed to go bankrupt.
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Bookkeeping – Debits and Credits in Liability Accounts (Lesson 5)
Whenever a business commits to purchase time or product and that employee delivers their time or the supplier delivers the product, you owe them money. This is a liability.
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Bookkeeping – Debits and Credits in Asset Accounts (Lesson 4)
Debits and credits are two words that are the most recognized terms synonymous to bookkeeping and accounting.
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Bookkeeping – Ledgers and Journals (Lesson 3)
In order to understand how an entry is made to the books of record, the bookkeeper needs to understand the difference between a journal and a ledger as they pertain to bookkeeping.
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Bookkeeping – Dual Entry System (Lesson 2)
In accounting the term dual entry is used often. Other names include Double Entry and Offsetting Entry.
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Bookkeeping – Account Types (Lesson 1)
To fully grasp the concept of accounting a bookkeeper must accept that there are six (6) different types of accounts. All the reports, ledgers, journals and entries revolve around these six types of accounts.
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Travel Expenses – Per Diem Methods
When an employee travels for the company the question often arises as to how to best take care of the associated costs. By far the easiest and most efficient tool is using one of the accepted per diem methods advocated by the Internal Revenue Service.
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Profit Shifting in Small Business – Internal Shifting
Profit shifting in business is a term with two different interpretations. The more modern use of profit shifting refers to large multinational U.S. based companies shifting their respective profits to other nations with a friendlier and lower income tax rates. This article is written to explain the older and more traditional meaning of profit shifting specifically as…
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Leverage in Business
In the simple lever and fulcrum machine the force is magnified onto a load. The machine creates a mechanical advantage, a form of force amplification. In business the principle is exactly the same. Except here we are not moving a physical object but the objective is to amplify the profitability or financial gain by using some…
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Internal Controls – Fixed Assets
Internal control is a subset of the accounting system to aid in proper reporting of existing assets and liabilities. Internal controls over fixed assets alleviate two distinct risks. The primary risk is physical in nature and relates to the asset getting lost, stolen or damaged thereby affecting the value as reported on the financial statements. The second risk…