Category Archives for Basic Accounting
Reconciliation
Bank Reconciliations Bank reconciliations are the top priority to ensure accuracy of records that all financial transactions have been recorded on the books. Matching bank activity with QuickBooks activity helps to uncover errors such as unrecorded transactions, bank errors and even certain types of fraud. As a general rule all accounts that receive statements from […]
Continue readingKnow your Accounting Method
Every small business uses one of the two accounting methods, cash or accrual accounting. The main difference between the accounting methods is the timing when expenses and revenue is recognized and reported for taxes. Cash Accounting The cash method is most commonly used because it is simple to use and takes cash flow into consideration. […]
Continue readingStandard Mileage Versus Actual Expenses
Basics Two methods can be used, the standard mileage method and the actual expense method for business use of car. If the car is used for both business and personal use, only the cost of the business use can be deducted. Not every business qualifies for the standard mileage deduction and, therefore, it is advisable […]
Continue readingYear-End Guide
Reconcile all bank and credit card accounts Make year-end corrections and journal entry adjustments Review petty cash entries for the year Review accounts receivables for any uncollected balances and write off any amounts that are deemed to be uncollectible Make sure all payables/expenses are recorded Review fixed assets for disposals and purchases and make necessary […]
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