Category: Business Principles
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What Startup Owners Can Learn from Expert Traders
When it comes to managing a successful business, expert traders can teach entrepreneurs a thing or two about how to gain from a competitive market. It may not be too obvious, but trading and entrepreneurship have much in common. In fact, some of the most successful investors and traders have started their own profitable companies,…
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Bookkeeping – Trial Balance Advanced Concepts (Lesson 68)
The trial balance is a special report used by accountants and bookkeepers. It is NOT a management nor a financial report. Its primary purpose is verification of account balances and compliance to the dual entry system (debits equal credits). It is generally utilized as the first step in the closing process for interim and annual reporting.
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Bookkeeping – Adjusting Journal Entries (Lesson 67)
One of the many tasks for bookkeeper in their daily operations is reconciling accounts including bank accounts, accounts receivable, accounts payable and many others. Invariably, the balances are off and need adjusting. To reset or balance the account the bookkeeper must use an adjusting journal entry.
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Bookkeeping – Complex Entries Expanded (Lesson 66)
A journal entry with multiple lines of entry affecting several different ledgers (accounts) is commonly referred to as a complex entry.
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Bookkeeping – Recurring Entries (Lesson 65)
Every day bills arrive from vendors that are mere repetition like the electric or phone bill. They basically recur every so often (mostly monthly).
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Bookkeeping – Charitable Giving (Lesson 64)
Many small business owners are actively involved in the community and thus donate time and money to their favorite cause. In almost every case the owner believes the donation is a business deduction. It is NOT a business deduction for tax purposes except under the C-Corporation status; however, the business is still writing the check.
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Bookkeeping – Other Transportation Costs (Lesson 63)
There is much more to transportation with bookkeeping than accounting for vehicle operations, addressing mileage reimbursements or tracking auto costs related to owners and family members.
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Bookkeeping – Auto Costs Related to Owners and Family Members (Lesson 62)
The Internal Revenue Service scrutinizes expenses that can and often are benefits to owners. The most common benefit is the use of a company owned car for personal travel including using the car to get to and from work.
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Bookkeeping – Mileage Reimbursement (Lesson 61)
Some small businesses manage transportation costs in incremental payments by utilizing mileage reimbursement. It is a very advantageous system if used correctly.
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Bookkeeping – Vehicle Operations and Accounting (Lesson 60)
The Internal Revenue Service authorizes two different methods to deduct expenses for vehicle operations. The most commonly used method in small business is the mileage reimbursement method explained in Lesson 61.