Cash and accrual-based accounting are the two common types of accounting. Businesses must select one of the accounting methods to record transactions. The two accounting methods differ in terms of the timing of recording transactions. If you are a small business owner, you must know the difference between cash and accrual-based accounting methods. In this […]

It comes to no one’s surprise to learn that bookkeeping is an important business activity. However, it is also one of the most time-consuming tasks. You need to know bookkeeping basics to ensure that you correctly record business expenses. Understanding efficient bookkeeping will also help you understand the reports prepared by outsourced bookkeeping providers. Let’s take a look […]

An important task for small business owners is managing financial resources. You need to have a clear understanding of the important elements of the financial statement to make good business decisions. Assets and liabilities are two critical elements that help you evaluate the financial position of your business. A thorough understanding of these basic terms […]

Business owners need to know about important accounting terms. This is important so that they understand the financial statement prepared by outsourced bookkeeping providers. Learning accounting terms should be high on the list of priorities, particularly for small business owners. Here are some of the common accounting terms that you should be aware of to […]

Cost control is an important accounting activity for every business. One effective cost control measure that can help a business to remain competitive is standard costing. The costing method serves as the reference point for performance evaluation. Businesses that adopt standard costing can improve their operational efficiencies. In this blog post, you will learn about […]

The majority of small businesses rely on credit financing to meet operational expenses. A survey found that nearly 70 percent of businesses rely on debts. Small businesses that have outstanding debts face financial problems. It is costly to service debts. Here we will share some tips to minimize business debts. 1. Accelerate Customer Collection Most small […]

Expense reimbursement fraud is one of the growing problems faced by organizations today. Preventing fraud is important to avoid financial burdens on a company. A report carried out by the Association of Certified Fraud Examiners found that expense reimbursement frauds represent about 11 percent of fraud in large companies and 21 percent in small businesses.   […]

Accounting software today offers a number of features, ranging from intermediate to expert level features. This allows small business owners as well as large enterprises alike to benefit from using accounting software. Today’s cloud accounting software has advanced features such as remote connectivity, data encryption, inventory management, and more. To select the best accounting application, […]

Estimated tax refers to the quarterly payment of tax. The tax amount is based on the reported income of the filer. Most small business owners, independent contractors, and freelancers are required to report estimated taxes for the quarter. In this blog post, you will learn how to estimate tax using the accounting data prepared by […]

You just got to know the difference between cash and accrual basis accounting. Another accounting term that baffles some business owners is a nominal account. Nominal Accounts are general ledger accounts that are closed at the end of the fiscal year. When do you use nominal accounts? And why would you use them? Nominal Accounts: […]