Tag: Accounts Payable
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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 – 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 – Cash or Accrual (Lesson 25)
Generally Accepted Accounting Principles (GAAP) advocates using the accrual basis of accounting over cash basis. The difference between the two methods is important to understand as a bookkeeper.
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Control Accounts in Accounting
Accounting uses control accounts to sum up activity related to a particular function of business. As an example the bank account has a register which identifies the activity in a ledger format of what transpires at the bank for this particular account.
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Create a File Structure for Accounting
Creating a file structure for accounting is critical for the overall success of the business. If properly structured, data retrieval and information access add to the overall value of the company.
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Cash Flow – A Basic Definition
Cash flow is the ability of a business to turn its product or service into cash. It is generally measured in dollars or in dollars against a time period. The simplest example I can think of is a child selling lemonade.