A business has the ability to record transactions on a cash or accrual method of accounting. This is one of the first accounting decisions a business has to make. It is also one that a business has to evaluate on an ongoing basis. The benefit of using one method may no longer apply given changes...Read More

Reasonably up-to-date books can be used to make financial decisions.  Business can make changes and to seize opportunities. They can also show lenders and investors that the business is serious about doing things right.  But even with computers and systems that share electronic data, the business’ books will still be weeks if not months behind....Read More

Quickbooks Online can automate some bookkeeping tasks.  The process of importing transactions via the bank feed is one example.  Simply connecting the bank and having Quickbooks Online download the feed does not produce accurate financials.  It isn’t intended to do so. About the Quickbooks Online Bank Feed Quickbooks Online prompts users to connect their bank...Read More

Keeping accurate books can be a challenge for small businesses. Small businesses are usually able to track their income in an accounting system. Some manage to track expenses. But few actually take the time to track their assets. This results in inaccurate financial statements. This post considers an example of a vehicle purchase, to show...Read More

We get it.  Bookkeeping is a chore.  It is a chore that takes time and energy that could be focused on growing and building the business.  As bookkeepers, we have seen it all. Here are six common bookkeeping mistakes we see businesses make: 1.  No process to review financial transactions Even small businesses receive and...Read More

Online accounting systems have now advanced to a point where they can give traditional stand-alone accounting software a run for their money. In fact, we have now moved most of our clients to online accounting systems. We did this as we have found that the benefits of the online systems fix many of the shortfalls...Read More

The cash flow statement is a report that shows the cash generated and used during a specified time period.  The cash flow statement is particularly important for businesses who keep their books using the accrual method. Cash Flow Statements for Accrual Method Businesses With the accrual method for keeping books, revenues and expenses are recorded...Read More

A business’s ability to generate earnings consistently over time is a major driver for investors and a key for the business’s financial management to understand the past, current and on-going financial position. Financial statements can greatly aid in determining profitability, ability to pay back debts, and how to plan for the future.  There are three...Read More

There are a lot of reasons to hire a professional bookkeeper.  These reasons vary from industry to industry and from one business to another.  Despite their differences, the primary benefits of hiring a professional bookkeeper are the same.  Here are the top 3 reasons to hire a professional bookkeeper: Manage Cash Flows Businesses need cash....Read More

The accounting formula is assets less liabilities equals owner’s equity.  The bookkeeping process categories transactions into subcategories under these three broad categories.   How the transaction is recorded depends on whether the transaction increases or decreases the account. The increases and decreases are classified as debits and credits.   While this may not sound like...Read More