Tag: Online Bookkeeping
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Asset Management
When recording a new vehicle on the balance sheet, you’ll need to consider several aspects to ensure accurate accounting. Here’s a step-by-step guide: 1. Determine the Vehicle’s Cost Purchase Price: The actual amount paid for the vehicle. Taxes: Any sales tax paid on the purchase. Registration Fees: Initial registration and licensing fees. Delivery and Handling […]
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3 Bookkeeping Tips You Can Use Year Round
3 Bookkeeping Tips You Can Use Year Round As a business owner, bookkeeping is an essential task that can’t be ignored. It’s not just a yearly chore, it’s an ongoing process that helps you stay on top of your finances, manage your cashflow and make informed business decisions. In this blog post, we’ll explore three […]
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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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Recording charitable contributions in bookkeeping
Recording charitable contributions in bookkeeping involves accurately documenting donations made by your business to qualified nonprofit organizations. These contributions may be eligible for tax deductions, so proper record-keeping is crucial. Here’s how to handle charitable contributions in your bookkeeping: Identify Qualified Charities: Ensure that the organizations you donate to are recognized as qualified charitable organizations […]
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Tips on tax reduction for businesses
Reducing taxes for your business legally and ethically is a sound financial strategy that can increase your profitability and cash flow. Here are some tips on tax reduction for businesses: Choose the Right Business Structure: The structure you choose for your business (e.g., sole proprietorship, partnership, corporation, LLC) can significantly impact your tax liability. Consult […]
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What is GAAP?
GAAP stands for Generally Accepted Accounting Principles. It is a set of standardized accounting principles, procedures, and guidelines used in the United States for financial reporting and the preparation of financial statements. These principles ensure consistency and comparability in financial reporting across different companies and industries. Key characteristics and components of GAAP include: 1. Consistency: […]
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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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How do I handle sales tax and record it in my books?
Handling sales tax and recording it in your books is an important aspect of financial management, especially for businesses that are required to collect and remit sales tax to tax authorities. Here are the steps to handle sales tax and record it in your books: Determine Sales Tax Obligations: First, determine whether your business is […]
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Common Errors in Tax Preparation
Mistakes can happen when you’re preparing your taxes, even with all the technological automation on hand. A good way to avoid the oversight is to keep a list of common errors that can happen when making your report. •Assuming the wrong due date•Confusion over the most advantageous filing status•Not claiming the Earned Income Tax Credit•Failing […]
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Reasons Why Your Business Needs an Accountant
Do you ever think your business needs an accountant? There is a high percentage of small business owners shutting down after just a year of operation and most of the time it is due to making wrong financial decisions. Most small business owners don’t hire an accountant so they take on all the financial responsibility […]