Picture this…How would you feel if a surgeon told you, “I don’t need to do any tests or scans before I do your surgery, I’m just going to wing it”? You’d immediately get up, leave that office and never come back. So why would you do that with one of the most important parts of…

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I’ve been working on a clean-up for 2020 for the past couple of weeks. My client did what they could to keep up on their #bookkeeping this year. BUT…none of the accounts were reconciled, there were hidden expenses, extra accounts that were made up, etc.My client is amazing at what they do, but they aren’t a bookkeeper.…

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The third and final of the 3 main Financial Statements is your Statement of Cash Flows, which tells you where your money is coming from and where it’s going. It shows your Net Income and any adjustments made to the Net Income for money you owe or are owed, etc. It also breaks your transactions…

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The second of the 3 main Financial Statements is the Profit & Loss (also called the P&L or Income Statement).   If you have multiple income streams for the business (ex. You offer both Products and Services), it will break the income section into each type based on your Chart of Accounts. Expenses are also…

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Financial Statement #1 is the Balance Sheet: -Shows a list of Assets, Liabilities, and Equity and all account balances. In Quickbooks, you can click on the Total for each account to see a list of all the transactions that posted during your requested time frame -Groups together all Assets and the total -Groups Liabilities and…

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Before we start talking about the Financial Statements, I want to introduce you to our new friend Net Income. Income (Money coming IN) – Expenses (Money going OUT) = Net Income (This can be a Profit or Loss). Net Income tells you if your business has made a profit. If you did, this number will…

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Do you have a shoebox of receipts that sits in your office and gets more and more full every month until tax time comes when you deliver said shoebox to your CPA? Is your bank account linked to your Quickbooks, and the transactions just stream in, never to be categorized or reconciled? Do you only…

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Equity is the last piece of the Accounting Equation, which is Assets = Liabilities + Equity. If you’ve read my previous blog posts, you already know what Assets and Liabilities are, but what’s Equity? There are several definitions depending on what type of conversation you’re having (investing, society in general, business, etc.). For business owners,…

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Considerations for Long-Term Liabilities: 1.       Long-Term Liabilities typically have interest added by the Lender every month. This interest isn’t included when you add the loan to your books since it isn’t included in the amount you borrowed. 2.       You should receive an Amortization Schedule from the Lender. This breaks down all your future payments by…

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A business liability is something owed by the company to a person, entity, etc. These could be Current (short-term), Long-Term, or a combination of both. What’s the cutoff between Current and Long-Term? Current Liabilities are due within the next 12 months. If you’ll be making payments on the balance for more than a year, the…

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