In the accounting world, there are two main ways of preparing your books and financial statements. These two methods are accrual and cash. Although they have some similarities, there are large enough differences between the two to make accrual the most widely used because of its greater accuracy.
For statement purposes, accrual accounting is much more fair and accurate when compared to cash accounting. Read more
As a business owner there are many jobs that need to be delegated, you cannot do everything yourself, even if you try, some things simply require a specialised skill-set that you don’t possess and couldn’t even if you had a life time to learn; bookkeeping is not one of those things.
Although there are of course very many brilliant, qualified bookkeepers available to take on the task of keeping your company’s books for you and your accountant would doubtless also do it for a nice fee, the keeping of your business’ records is something that is arguably best left to you the business owner.
Many business owners however bulk at the idea of bookkeeping, usually citing ‘too little time’ as the reason; they prefer to spend money on outside intervention. Read more
A very common question new users of QuickBooks have is “How do I record personal money used in my business?” One way is to use and equity type account called Owner’s Investment. Another method is to use a credit card type account. I prefer the latter.
Using a credit card type account allows you to keep business records completely separate from personal. Read more
There are practically endless possibilities when it comes to choosing your current bank account in the UK. Since the financial market in the UK is a very developed one, there will be a large variety of decisions you need to make when choosing your current account. Nevertheless, whether you are looking for your first current account or you want to switch your bank, the most important thing to pay attention to are the current account fees.
The surveys carried out on the market reveal the fact that the more than 80% of current account holders would switch their bank if charges were introduced on the current accounts. Read more
It is very hard to do anything in the UK without a bank account. Without a bank account, the very simplest of tasks become very complicated. Like it or not we are a society that has, for many of its most important transactions, dispensed with cash almost entirely; your employer will need, for instance, to pay your wages into a bank account, and paying your bills without a cheque book or debit card can be almost impossible.
So, we know that we have to use a bank account, but with the recent behaviour of many of our banks we may be feeling a little sheepish at the thought of having to choose between what often seems like a bad bunch. Read more
The first thing that stops people from actually saving for retirement is that they just don’t understand how any of it works. Once you break things down and start researching to make yourself a simple, understandable, doable plan it will make more sense and become more realistic. So, how to get started building a retirement plan? First you need to do some research so you can understand what types of accounts you want to build into your plan.
There are two main types of accounts that people use most often401k and IRAs. Read more
There is absolutely no doubt that business owners, especially those with small businesses should have a firm understanding of the basics of accountancy and bookkeeping. This is not to suggest of course, that they should be able to set themselves up as accountants in their own right, or indeed that they should be attempting to take the place that should rightly be filled by an accountant in their own business, but far too many business owners totally abdicate all responsibility for their business finances and hand it all over to their accountant, without the slightest idea what he will do with it.
This state of affairs is a very dangerous way to run a business of any size; a good business owner should be able to sit down with his accountant and discuss things, and understand what he is being told. Read more
A demat account is where your shares and securities are held electronically in an electronic account instead of the traditional physical manner. As an investor, you must have only the best demat account in India to get the ideal returns you want. When you open a demat account there are certain factors you must know. Read more
Offshore business accounts are the accounts that are present in offshore countries. There are many advantages for offshore bank accounts. These types of account provide privacy, low taxation and protection against local politics. Countries except homeland are known as offshore countries. Read more