Bookkeeping

All else being equal, it is safest if a check is deposited as fast as possible to avoid tampering with the instrument. Resolving outstanding issues is crucial because it helps maintain good financial health, prevents legal problems, and improves your credit score. Addressing these matters promptly can save you from future complications. In everyday life,…

An asset account in a bank’s general ledger that indicates the amounts owed by borrowers to the bank as of a given date. A temporary account to which the income statement accounts are closed. This account is then closed to the owner’s capital account or a corporation’s retained earnings account. T-Account: Definition, Example, Recording, and…

You might consider it the opposite of expenses, which is the money that goes out the door in your small business. You can also correlate revenue with gross pay on a paycheck before any deductions are made. Each small business creates and uses an income statement (profit and loss statement) to show the income and…

The first step of the accounting process is the analysis of the transactions. First, the accountants collect, identify, and classify receipts, invoices, and other financial data. Next, the professionals read the collected data, check each transaction that occurred, and note the reasons that led to those transactions. Finally, they put it under the right label…