Book transactions are transactions that have been recorded on your books but haven’t cleared the bank. As a small business, you may find yourself paying vendors and creditors by issuing…

It’s only permitted in the United States and assumes that the most recent items placed into your inventory are the first items sold. Under LIFO, you’ll leave your old inventory…

Outsourcing partners can minimize errors and ensure timely and accurate invoice processing and payments with robust processes, quality control measures, and cutting-edge technologies. This, in turn, strengthens vendor relationships and…

First, assess the complexity of your tax situation to determine the level of expertise required. Your business size also plays a role, as smaller companies may need basic services while…

The advent of computer technology in the latter half of the century revolutionized the industry, allowing for more efficient processing of invoices and risk assessment. Next, your customer pays the…

Xero regularly backs up your data and protects it with multiple layers of security. When selecting difference between balance sheet and financial statement cloud-based accounting software, it is essential to…

Despite the importance of accurate bookkeeping practices, most people don’t feel entirely confident with maintaining detailed business finances. Whether it’s a lack of interest or knowledge, many businesses outsource this…

The result would lead to a higher book balance than the bank balance. Also, sometimes the bank can make an error and record a transaction incorrectly, leading to an inaccurate…

Another example of the accrual method of accounting is expenses that have not yet been paid. They are legally and ethically responsible to be honest and trustworthy and must avoid…

If you need to create an income statement, you can do so with QuickBooks. A current ratio that is too high, though, can indicate you aren’t managing your capital efficiently,…