Bookkeeping

Is your cash flowing IN more than it flows OUT?

Posted by on Jan 12, 2015 in Accounting, Bookkeeping, Financial Freedom | 0 comments

Is your cash flowing IN more than it flows OUT?

The cash within your business is often referred to as the lifeblood – that which enables your business to not only survive, but also prosper. Just as your body will survive for a time without food or water, but without blood it will die, the same applies to your business. It can survive for a short time without sales or profits, but if it doesn’t have cash it will die. As a business owner you have a rough idea in your head at all times about how much cash you have. You can check your bank balance – even on your phone – and either breathe a sigh of relief or groan internally at the numbers reflected there. Cash is your indicator that the business is healthy. Or is...

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Are You a Pack Rat or a Laissez-Faire Filer, and What Can You Do About It?

Posted by on Jun 26, 2014 in Bookkeeping | 0 comments

How many times have you gone to pay a bill, only to discover that you missed an early payment discount option?  Or needed paperwork to give to your accountant or banker, and even though you know for a fact it passed your hands recently, you can’t find it to save your life? The sad truth is that many of us don’t have our paperwork in order.  Some of us don’t keep a single receipt, while others of us keep every single scrap of paper we come across. If you’ve ever been looking through your files only to realize that your financial records are unorganized or incomplete, you’ll know the feeling of despair and frustration.  And this affects your business and...

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Bookkeeping Mistake 10: Confusing Profits with Cash Flow

Posted by on Mar 27, 2014 in Accounting, Bookkeeping | 0 comments

This is part of a series of the Top 10 Bookkeeping Mistakes Small Businesses make.  To read the others, click here. Confusing profits with cash flow has been left to the last, the tenth of the top ten bookkeeping mistakes – but it’s a really important one.  You tend to remember the first and the last things you hear, so if you can remember that you don’t have to do your bookkeeping yourself (Bookkeeping Mistake 1) and that there’s a big difference between profits and cash flow, you’ll be doing a lot for your small business. Profits have to do more with the long-term view of your business.  Over time, are you making money (profit) or spending money...

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Bookkeeping Mistake 9: Misclassifying Employees

Posted by on Feb 27, 2014 in Accounting, Bookkeeping, Tax | 0 comments

This is part of a series of the Top 10 Bookkeeping Mistakes Small Businesses make.  To read the others, click here. Whether you have employees or not, misclassifying them is a classic bookkeeping mistake. That may sound strange, but you need to think about your employees not the way you, or even they, do – but the way the IRS does. There are at least two ways you can misclassify employees: 1. Your employees are actually independent contractors. This is a huge issue that the IRS and the Department of Labor are really cracking down on.  Most business owners don’t realize that this is an issue with a number of federal, state and even local governments. This mistake...

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Bookkeeping Mistake 8: Lack of documentation or systems regarding petty cash

Posted by on Jan 23, 2014 in Accounting, Bookkeeping | 0 comments

This is part of a series of the Top 10 Bookkeeping Mistakes Small Businesses make.  To read the others, click here. “It’s just a few dollars.” “I don’t have my business credit card – I’ll just use cash.” “Take that from petty cash – we’ll top it up later.” These kinds of situations and statements are often made in small businesses. As we’ve talked about before, it’s easy when you run your own business to confuse business and personal matters to the point that it is hard to remember out of which account expenses are being taken.  (Or, perhaps it doesn’t seem to matter.) One of the results is that bookkeeping for your ‘petty cash’ – or...

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Bookkeeping Mistake 7: Not reconciling bank accounts

Posted by on Jan 16, 2014 in Accounting, Bookkeeping | 0 comments

This is part of a series of the Top 10 Bookkeeping Mistakes Small Businesses make.  To read the others, click here. Running your own business affects your life as a whole – and it especially affects your finances, and your bookkeeping. Reconciling your business’s books with your business bank statement(s) every month is one of the most basic accounting duties.  Whether you do it yourself, or your bookkeeper takes care of it, or your accountant, it’s absolutely critical that it is done regularly. Although it can sound complex, bank account reconciliation is actually relatively simple.  Just compare your business accounts with your bank statement, and make...

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