QuickBooks for Small Business: Which Version Do You Need?

The free plan is packed with features that are helpful for a solo operation. You can manage up to 1,000 invoices per year, set up recurring invoices and track expenses. If you want to add on payroll, you’ll need to upgrade to a paid plan, which starts at $15 per month (paid annually) and allows […]

Accounting for Purchase Discounts: Net Method vs Gross Method

This is done to ensure that only actual payments made during a period are included in expenses for that period. Gross method of recording purchase discounts is the method in which the purchase and the payable are recorded at the gross amount, before any discount. Therefore, purchases, along with any payables in the case of […]

What Is Stockholders Equity & How Is It Calculated?

The sales of a company over the course of the three-year historical period were provided as assumptions, i.e. $100 million, $125 million and $150 million. However, the marginal improvement in accuracy is negligible in most cases, i.e. the insights derived, in all likelihood, will be nearly identical whether the average or ending balance is used […]

Retained Earnings Explained Definition, Formula, & Examples

Content AccountingTools How to calculate the effect of a cash dividend on retained earnings Retained Earnings vs. Revenue Statement of retained earnings definition Retained earnings are the profits or net income that a company chooses to keep rather than distribute it to the shareholders. From the profit it earned during a year, it had a […]

1 8 The Accounting Cycle Financial and Managerial Accounting

Content Step 6: Closing the Books Post transactions to general ledger. How the Accounting Cycle Works Closing the Accounting Cycle Preparing the Trial Balance A period is one operating cycle of a business, which could be a month, quarter, or year. If you use a single-entry accounting system (i.e., cash-basis accounting), you can still use the accounting […]

List of Accounting Services for Small Businesses

It’s better to implement it at the beginning and focus on your business. Shepherding a startup to a profitable business is a risky and time-consuming effort. Each accounting platform in this list endeavors to mitigate the day-to-day accounting tasks required for a business to survive so entrepreneurs can focus on success. Additionally, GoDaddy Online Bookkeeping […]

The 5 Best Online Accounting Firms for Small Business

Bookkeeping is the practice of organizing, classifying and maintaining a business’s financial records. It involves recording transactions and storing financial documentation to manage the overall financial health of an organization. Most businesses use an electronic method for their bookkeeping, whether it’s a simple spreadsheet or more advanced, specialized software. You also can add bookkeeping, priority […]

Ecommerce Accounting & Bookkeeping Guide To Best Practices 2024

When you do so, you’ll be in control of the different areas of your business and could save some money in the long run. The statement of cash flows is especially important if you engage with any financing activities, such as investments or loans. You should review all these items ecommerce bookkeeping to determine the […]

Cash Flow Statement: What It Is and Examples

In its entirety, it lets an individual, whether they are an analyst, investor, credit provider, or auditor, learn the sources and uses of a company’s cash. By analyzing these three components, stakeholders can gain a comprehensive understanding of how a company generates and uses cash. This information is crucial in assessing the liquidity, financial stability, […]

How to Hire a Bookkeeper

Consider factors like the size and complexity of your business and what tasks you would like a bookkeeper to handle moving forward. When searching for a quality bookkeeper, it’s essential to hire someone who can handle all of these tasks competently and uses proactive thinking to address discrepancies. Accountants can take care of bookkeeping duties, […]