When you hear the term bookkeeping, you may think of an accountant scribbling formulas amid piles of bills, receipts, and checks. But it’s actually easy to understand what bookkeeping is all about. Bookkeeping is simply the process of recording financial transactions for a business. Bookkeeping is a subfield of accounting, whichRead More →
Accounts receivable definition: “Accounts receivable” refers to money owed to you by your customers for goods or services that you have already provided to them. Many people think of it as a “sale”. If you’ve made a sale but haven’t gotten paid for it yet, you have a receivable. Accounts receivable example: Jackie hasRead More →
Keeping track of cash flow is critical for every business owner in every industry. Having a report done every quarter for small business is critical to understand where your money is coming from and going. What is it? The basic concept is easy to understand. A cash flow is a movementRead More →
One of an accountant’s basic goals is to keep accurate and useful records of financial transactions. Individuals, small firms, large corporations, and even whole countries faced with this task have two major methods from which to choose: the cash basis of accountingand the accrual basis of accounting. The basic difference between theRead More →
What is it? A bank reconcilation is a process in which a company checks that both its records and the bank’s records are correct. It’s a two step process by which they take any checks written during the month and compare it against all the checks that have cleared the bank. TheRead More →
Accounts payable definition: Accounts payable are your company’s short-term debts. Short-term debts are those that must be paid off within 1 year. However, “accounts payable” (abbreviated “AP”) is also frequently used to refer to the department of a company that makes payments to suppliers and other creditors. Accounts payable examples: Example 1: Benjamin runs a bakery. He purchasesRead More →
