Accounting Glossary: 39 Key Terms with Experts
Accounting, like any other sector, has a vast range of industry-specific phrases that most of us may not use or even comprehend. While many of the words are used in most corporate situations, some are unique to the accounting field. If you want to know your big data from your GAAP and your general ledger, […]
What is General Ledger?
A general ledger is a company’s financial data record-keeping system, with debit and credit account records certified by a trial balance. It keeps track of every financial transaction that occurs during the life of a running firm and stores account information required to generate the company’s financial statements. Transaction data is separated into accounts for […]
Best Accounting And Bookkeeping Software For Small Businesses
Accounting and bookkeeping software is a game-changer for small business owners, offering an affordable way to manage finances, track income and expenses, and prepare for tax season. It’s an optimal solution for start-ups or small businesses that need to tighten their belts at the initial stage, rather than hiring an accountant. But there are so […]
What Is A Balance Sheet? How It Works
A balance sheet is a really important paper for any business. It’s like a photo that shows what a company has (like balance of money and goods), what it owes (like loans), and how much the business is worth to its owners at a certain time. In this article, we’re going to talk about what […]
What’s Accounts Receivable? How It Differs From Accounts Payable
Whether you’re running a startup or a big company, knowing about accounts receivable and accounts payable is really important. These are parts of your balance sheet and they show how well your business is doing. Think of them like two sides of the same coin – you need to keep them in balance. In this […]
How to Hire a Bookkeeper For Small Business
Hiring the right bookkeeper is a crucial step for any business, big or small. A bookkeeper’s role is fundamental in managing your financial records and ensuring your business’s financial health. This guide will walk you through the key considerations in how to hire a bookkeeper, from choosing between full-time and freelance options to understanding the […]
How Accounts Receivable Vs Payable Differ
Let’s talk about two key parts of any business’s finances: Accounts Receivable vs Payable. Imagine your business is like a piggy bank. Accounts Payable is the money going out—you’re breaking open the piggy bank to pay for things you need or have used. Accounts Receivable is the money coming in—the cash you’re collecting for work […]
Cash vs Accrual Accounting. Which Method Is Right For Your Business?
When it comes to accounting methods, the choice between cash vs accrual accounting is a pivotal decision for businesses of all sizes. This decision can significantly influence financial reporting, tax obligations, and overall business planning. Understanding the key differences of each method will empower you to select the one that best aligns with your company’s […]
What Is a Bank Reconciliation Statement, and How Is It Done?
Bank reconciliation is a fundamental duty that accountants and bookkeepers need to execute to ensure the company’s cash book aligns with its bank statement. This process not only verifies the accuracy of financial records but also helps in detecting errors, fraud, and discrepancies. Let’s delve deeper into the bank reconciliation statement process, terminology, and its […]
What Is The Difference Between Bookkeeping And Accounting?
In the world of finance and business management, the terms “bookkeeping” and “accounting” are often used interchangeably. However, they represent different aspects of financial management and cover different sets of responsibilities, skills, and objectives. Understanding the difference between bookkeeping and accounting is crucial for businesses to ensure effective financial management. Key takeaways: Bookkeeping focuses on […]
