Category: Bookkeeping

Utilize Effective Communication ChannelsEstablish clear communication channels with your clients. Regularly update them on due dates, offer multiple contact methods, and provide detailed invoice information to prevent misunderstandings that could delay payments. Let us take a look at a numerical example of calculating the average collection period. Impact on Credit Terms and Customer Relationships However, an ongoing…

A little tuning is always needed as a lower collection period can leave some customers dissatisfied. Expecting to pay quicker might appear like a stringent rule and push them to find alternative providers. In the following example of the average collection period calculation, we’ll use two different methods. Whenever you have bills that you’re scheduled…

Keep reading to learn what depreciation is, how it is calculated and how your depreciation calculation unearned revenue can affect your business. An estimate of how long an item of property can be expected to be usable in a trade or business or to produce income. The established amount for optional use in determining a…

It’s important to accurately indicate the breakdown between cash and checks. This ensures that the bank processes each type of deposit correctly and avoids any confusion or misallocation of funds. With the rise of mobile banking, many banks now offer the option to deposit checks using a mobile app. When using this option, the endorsement…

Remember, the goal is to create a bookkeeping system that gives you the information you need to make informed business decisions without overwhelming you with unnecessary complexity. Double-entry bookkeeping on the other hand, records each transaction twice (as a debit and a credit). This method provides a complete picture of your financial position and allows…

Try it out today and see how easy it can be to find a name that matches your vision and brand. Many small business owners create this statement when investors want to see how profitable the business is. Similar reports that are called profit and loss statements will be made too. Cash basis and accrual…

From pre-seed to Series C, no one knows startups better—it’s why we’re the largest startup accounting firm in the US. Pilot specializes in working with high-growth technology startups, among other small businesses. Elementor is the leading website builder platform for professionals and business owners on WordPress. Whether you’re a developer, designer, marketer, or business owner,…

Assets include all cash, accounts receivable, equipment, and materials purchased or leased for a project. On a high level, an asset is any resource with economic value owned or controlled by you. With this structure, the chart of accounts will help you organize every transaction by type or category, such as assets, liabilities, income, and…

Since QuickBooks Online helps create financial reports, contractors can use the integrated accounts from Knowify to help create reliable and accurate financial reports for their business. The completed contract method is best used for small jobs that are relatively short-term or when a project brings an inherent risk in completion. Under the completed contract method,…

Once you submit your documentation, they will work with you to determine the best tax strategy for your business. They have a team of CPAs and tax attorneys that can assist with anything from filing your annual return to resolving an IRS audit. You can start the process by scheduling a free consultation with one…