Category: Business Principles
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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.
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Bookkeeping – Tracking Sales Tax (Lesson 40)
Many businesses especially retail have to collect sales tax as a function of their legal mandate from state governments. In effect the business is a collection agent for the state.
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Bookkeeping – Tracking Returns and Allowances (Lesson 39)
Not every customer is satisfied with the product they purchase. The old saying of ‘You can’t please everyone all the time’ is true.
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Bookkeeping – Sales Via Debit and Credit Cards (Lesson 38)
Historically the only two forms of payment were either cash or check. Then credit card payments became very popular in the eighties and today the preferred method is debit. Debit payments are an instantaneous removal of value from the customer’s account and suspended by the banking system until deposited into the business checking account.
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Bookkeeping – Accounts Receivable Management (Lesson 37)
In my mind accounts receivable management is the highest priority duty of a bookkeeper. Cash is the lifeblood of small business.
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Bookkeeping – Tracking Invoices (Lesson 36)
Every small business should track their sales in order to evaluate performance, opportunity and trends. In a good system sales will identify date and time of purchase; customer’s name and demographic information; items purchased with quantity and dollar values and finally, methods of payment.
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Working Capital Cycle
The college textbook definition of working capital is current assets minus payables and accrued expenses. The term explains the dollar value of flexibility a business operation has to take advantage of immediate opportunities or endure sudden or long-term setbacks. Since it is a balance sheet based formula the value is a function of a moment…
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Bookkeeping – Employee Benefits (Lesson 35)
One of the best parts of being a bookkeeper is seeing employees smile when they utilize employee benefits. There are a multitude of different employee benefits out there including: 1) Health Insurance, 2) Retirement, 3) Life Insurance, 4) Dental Care, 5) Vision Care, 6) Cancer Insurance, 7) Disability Insurance and 8) Child Care.
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Bookkeeping – Quarterly and Annual Payroll Reports (Lesson 34)
Federal and state compliance requires the filing of several different reports by certain deadlines. In this lesson I explain the various reports, filing deadlines and best practices to comply with the law. I’ll explain the quarterly set of reports first then the respective annual requirements.