Tag: Accounting
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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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Working Trial Balance
The accounting profession uses various tools to generate accurate accounting information at the close of accounting cycles (monthly, quarterly and annually). The primary document is the working trial balance. It is very similar to the traditional trial balance except there are additional columns used to identify various adjustments and the corresponding source documents (work papers).
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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.
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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.