Tag: Cash
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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 – 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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Using Cash in Construction
There is a notion in business that using cash to pay for materials or service is illegal. IT IS NOT ILLEGAL TO PAY FOR MATERIALS OR SERVICE WITH CASH. It is illegal to do this if you do not properly document the transaction.
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Working Capital
Cash is the lifeblood of every business. Without cash a business operation can come to a standstill. Cash is one component of working capital, a term referring to current assets (Gross Working Capital) less payables and accrued expenses.
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Bank Reconciliations – Fundamentals
The bank reconciliation is a daily accounting function for every small business. In order to fully appreciate its value, the small business owner needs to understand the fundamentals of how bank reconciliations are performed. In addition, there are some higher level types of transactions that affect the cash position.
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Inventory – How to Finance
In financing a small business, there are a multitude of tools available. One way to finance inventory is by using the 30 day pay program with your vendors.
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Effective Internal Controls for Cash
All businesses should have internal controls to deter fraud, detect theft, and preserve assets. Effective internal controls for cash prevent the proverbial hand in the cookie jar.
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Construction Draw Schedule
A construction draw schedule is a financial tool used by contractors in identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. The construction draw schedule is instrumental in keeping the project moving along.
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Small Business Model Series Entry #4 – Basic Research
I spent a lot of time on the internet researching the industry as a whole. There are about 220,000 machines in the US that are owned by non-banking companies and individuals. My first thought is that this is about 1 machine per 1,000 individuals (there’s about 220 million adults in the US/220 thousand machines and you…