Tag: bookkeeping and financial planning in Charleston
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Tips on effective debt management for a business owner
Effective debt management is crucial for business owners to maintain financial stability, sustain growth, and avoid cash flow issues. Here are some key tips for managing business debt: 1. Understand Your Debt Categorize Your Debts: Separate short-term debts (e.g., working capital loans) from long-term debts (e.g., equipment loans, mortgages). This helps you understand repayment timelines […]
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Preventing Expense Fraud
Preventing expense fraud is critical for protecting your business’s financial health and ensuring that employees or contractors don’t take advantage of loopholes in the system. Expense fraud can take various forms, such as inflating expenses, submitting fake receipts, or making personal expenses appear as business-related. Here are 5 key steps you can take to prevent […]
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Payroll Taxes- Information to know
Payroll Taxes- Information to know Payroll taxes are mandatory deductions from employees’ wages to fund social insurance programs. Here’s a comprehensive overview of payroll taxes, including schedules and key information: Types of Payroll Taxes Federal Income Tax Withholding: Based on the employee’s W-4 form and the IRS tax tables. Schedule: Withheld each pay period and […]
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Managing Cash Flow
Managing Cash Flow Managing cash flow is critical for the success of any business. Cash flow refers to the movement of cash in and out of a business, and it is essential to maintain a positive cash flow to ensure that the business can pay its bills, invest in growth, and remain solvent. In this […]
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All About Owners Equity
Owner’s equity, also known as shareholders’ equity or stockholders’ equity in the context of corporations, represents the residual interest in the assets of a business entity after deducting liabilities. It’s essentially the owner’s or shareholders’ claim on the company’s assets. Owner’s equity is a crucial concept in accounting and finance, as it reflects the net […]
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What is a Journal Entry?
A journal entry is a fundamental accounting record used to track and document financial transactions within a business. It’s the first step in the double-entry accounting system, which is widely used in accounting to maintain accurate and balanced financial records. Each journal entry consists of at least two parts: a debit and a credit. Here’s […]
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How to record loan payments
Recording loan payments accurately is essential for maintaining your financial records and ensuring that you meet your financial obligations. To record loan payments, follow these steps: Gather Information: Collect all relevant information about the loan, including the loan agreement, the lender’s name, the loan amount, the interest rate, the term, and the payment schedule. Identify […]
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Must Follow Golden Bookkeeping Rules
Effective bookkeeping relies on several fundamental principles that can be considered “golden rules” for managing financial records accurately and efficiently. Here are some must-follow golden bookkeeping rules: 1. Separate Business and Personal Finances: Keep your business and personal finances entirely separate. Maintain separate bank accounts and credit cards for your business to avoid confusion and […]
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What are accounting accruals and how can they help you?
What are accruals and how are they treated in bookkeeping? Accruals are a fundamental accounting concept that involves recognizing revenues and expenses in the financial statements before cash is received or paid. They are necessary to accurately match income and expenses to the period in which they are incurred, providing a more accurate picture of […]