According to Merriam-Webster, a liability is defined as something for which one is legally responsible, particularly a financial debt or obligation. In accounting, the term also refers to an entry on a balance sheet that represents a debt owed by a business or individual. Liabilities are typically categorized into two types: long-term liabilities, such as … Read more
Payroll can feel like a mystery. You input some information into payroll software and out comes a pay stub. If everything is set up correctly, employees receive direct deposits, the IRS receives its payments, benefits and child support are paid, and the process runs like a well-oiled machine. Until it doesnt. Having a basic understanding … Read more
Staff leave for many reasons, and they take their knowledge and skills with them. Therefore, if you run a business, it is imperative that you know what happens in each of your departments. Otherwise, there can be several unintentional and potentially difficult challenges and discoveries that occur during the turnover. Below are a few key … Read more
In the world of bookkeeping, efficiency and accuracy are paramount. Managing finances effectively requires not only a keen eye for detail but also the right tools. Among these tools, QuickBooks stands out as a staple for bookkeepers worldwide. This powerful accounting software streamlines financial management tasks, but mastering it requires more than just basic knowledge. … Read more
It may be June, but it is never too soon to prepare for January, specifically your 1099s! As a reminder, 1099s are used to record income. The most commonly used forms are the 1099 NEC (Nonemployee Compensation), in which businesses report payment over $600 given to nonemployees, such as an independent contractor or attorney, and … Read more
We all like shortcuts, but there are some shortcuts that you should avoid. Do you ever skip adding the Vendor when you are categorizing your bank feeds or entering expenses in your accounting software (ie. Quickbooks, Netsuite)? Skipping the step of adding the Vendor when you initially enter the transaction may save you a few … Read more
Monthly reconciliations of bank accounts, credit cards, and even loans serve many purposes. Reconciliations ensure that the transactions entered into your bookkeeping software, such as QuickBooks, match the actual transactions that happened at your financial institution. At the completion of a reconciliation, once you have a $0 discrepancy between deposits and expenses, a … Read more
One important step for fraud prevention is for owners to watch the business financials to identify changes in the income/expenses. This is easily done by looking at a couple of simple reports found in most accounting software packages, such as QuickBooks or NetSuite. In QuickBooks, these reports are found in the Reporting Center or under … Read more
Tax laws are ever changing from one administration to another. Customizing your chart of accounts to align with tax deduction categories is a great practice. This action not only helps your accountant at tax time determine what is deductible, but also helps your company make better cost savings or investment decisions based on what is … Read more
Linking your bank and credit card accounts to your QuickBooks Online (QBO) account can be a great time saver if done correctly. It also has the advantage of preventing typographical errors. It is like being able to copy and paste all the transactions from your bank statement to your books. QBO has a protective … Read more