Accounts payable vs accounts receivable: A quick guide to improving cash flow
At its core, the difference between accounts payable and accounts receivable is pretty simple. Accounts payable (AP) is the money your business owes to suppliers and vendors, which makes it a liability on your books. On the flip side, accounts receivable (AR) is the money customers owe you for services you've delivered, making it an asset. Getting a firm grip on
Small Business Bookkeeping A Guide for Service Businesses
Trying to run your business without proper small business bookkeeping is a bit like driving your car with a blanket thrown over the dashboard. You might be moving forward, but you have no clue how fast you're going, if you're about to run out of gas, or if the engine is on the verge of overheating. Bookkeeping isn't just about
The Best Payroll Software For Small Business A Complete Guide
When you're trying to find the best payroll software for small business, the conversation almost always narrows down to two major players: Gusto and QuickBooks Payroll. Think of it this way: Gusto shines as an all-in-one platform for HR and benefits, while QuickBooks Payroll leverages its deep, native connection to your accounting system. The right choice really hinges on what
Your Ultimate 10-Point Employee Benefits Compliance Checklist for 2026
Navigating the labyrinth of employee benefits regulations, from the Affordable Care Act (ACA) to the Employee Retirement Income Security Act (ERISA) and various state-specific mandates, is a high-stakes challenge for any service business. A single misstep in benefits administration can lead to crippling penalties from the Department of Labor, costly employee lawsuits, and time-consuming audit nightmares. This is precisely why
What are the basic accounting equation: Guide to assets, liabilities, and equity
At its core, the basic accounting equation is Assets = Liabilities + Equity. This simple but powerful formula is the absolute foundation of all modern bookkeeping. It shows that everything a company owns (its assets) is financed by either what it owes to others (its liabilities) or what the owners themselves have invested (its equity). The Accounting Equation Explained Simply Think of
Mastering examples of adjusting entries: 8 Essential Journal Practices
Imagine trying to gauge your business's health by only looking at your bank account. You'd miss unpaid client invoices, future expenses you've already paid for, and the true cost of using your assets over time. This incomplete picture is the reality of cash-basis accounting. The bridge to a more accurate financial view is a set of crucial journal entries made
Record Keeping for Small Business: A Practical Guide to Organized Finances
At its core, record keeping for a small business is the simple, systematic practice of tracking all your financial transactions. It’s the only way to truly monitor your performance, stay compliant, and build a solid foundation for managing cash flow. Without it, you’re just guessing. Why Good Record Keeping Is Your Business's Secret Weapon Let’s be honest, record keeping often feels like
Guide: Difference Between Invoice and Receipt Every Business Must Know
The fundamental difference between an invoice and a receipt really boils down to timing. An invoice is a request for payment that you send before a client pays you, while a receipt is proof of payment you issue after the money has changed hands. Think of it this way: an invoice says, "You owe me money," and a receipt says, "Thanks,
A Practical Guide to Budgeting and Forecasting for Service Businesses
For any service business, budgeting and forecasting aren't just tedious financial chores; they're the absolute foundation of your strategic roadmap. A budget is your game plan for how you'll spend your money, while a forecast acts as your guide, predicting where that plan will take you so you can adjust on the fly. Why Service Businesses Need a Financial Roadmap Let's be
Your Guide to Flawless Cash Flow Calculation
Calculating your cash flow isn't just a bookkeeping task; it's about getting a real-time health check on your business. It shows you the actual money moving in and out, a picture that profit alone can't paint. Think of it this way: revenue is vanity, profit is sanity, but cash is king. Knowing the difference is what gives you real financial