What are payroll liabilities? A Practical Guide for Small Businesses
When you run payroll, the money doesn't just go from your bank account to your employee's. There’s a crucial middle step. The funds you've earmarked for taxes, benefits, and other deductions become payroll liabilities. Think of your business as a temporary holding tank. You've calculated everyone's gross pay, but before you cut the checks, you’re legally required to pull out specific
A Guide to Basic Bookkeeping for Small Businesses
At its core, basic bookkeeping is simply the process of recording and organizing all the money that moves in and out of your business. Think of it as the financial story of your company—where every dollar came from, where it went, and what you have left. Getting this right is absolutely critical for making smart decisions and building a business
Understanding Net Cash Flows for Your Service Business
Let's get straight to it: net cash flows are the bottom line of your business's cash game over a certain period, whether that's a month or a quarter. It’s the final tally of all the actual cash that came into your bank account minus all the cash that went out. If the number is positive, you brought in more cash than
A Guide to Setting Up QuickBooks Online for Service Businesses
Getting your QuickBooks Online account set up involves a lot more than just plugging in your company name and calling it a day. A truly solid setup means you're customizing your chart of accounts, connecting your bank feeds, and defining who can see what from the very beginning. When you take the time to do this right, you're building a system
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
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
How to Read a Balance Sheet: A Simple Guide to Smart Decisions
To really understand your balance sheet, you just need to compare what your business owns (Assets) against what it owes (Liabilities) and what’s left in your pocket (Equity). It all comes down to one simple, but incredibly powerful, formula: Assets = Liabilities + Equity. Getting comfortable with this equation is the first step to seeing the full financial story of
How to Create a Chart of Accounts for Your Service Business
Before you can build your Chart of Accounts, you first need a solid grasp of how to categorize all your financial activities. The whole process involves grouping everything into five core account types, giving them a logical numbering system, and then plugging that framework into your accounting software. It’s less about accounting theory and more about creating a perfectly organized filing
How to Reconcile Bank Accounts the Right Way
At its core, bank reconciliation is simply the process of comparing your business's financial records to your bank statements. It's a methodical check to make sure the cash balance in your books lines up perfectly with what the bank says you have. This process helps you spot any differences and make the necessary adjustments, leaving you with a complete and