Category: Bookkeeping

Equity is the amount of money you and your investors have put into the business. You’ll know you’ve created an accurate balance sheet when the sum of equity and liabilities is the same as, or balances with, your assets. Expenses are the costs that a company pays to be able to generate revenue. Some common examples of expenses are employee wages, equipment depreciation, and supplier payments. It adds up your total revenue then subtracts your total expenses to get your … Continue reading “Key Basic Accounts for Balance Sheets and Income Statements”

Strong accounts receivable and accounts payable management are critical to managing the business to ensure an uninterrupted flow of capital both in and out of the company. With everything else you’re juggling as a small-business owner, it’s tempting to keep postponing your books. After all, you’re in business because of your proficiency in your field, not because you enjoy bookkeeping (unless, of course, you offer financial services). As a small-business owner, individual transactions matter — but so do your overall … Continue reading “What Is Bookkeeping? Definition, Tasks, Terms to Know”