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
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
The matching principle plays a key role in helping accountants develop a clear and consistent income statement. The overall goal of the matching principle is to ensure an accurate calculation of the revenues in the period in which the revenues were earned. The expenses then are followed by the revenues, meaning an accurate calculation must be done for this portion of the income statement as well. Read more
Have you ever thought you may have a certain attitude toward money that keeps you from getting ahead financially? We have all been influenced throughout our lives by family members, friends, and the media about the way we think about making, saving, and more importantly, spending money. The aim of this article is to make you question your spending history, identify your spending habits, and provide some simple ways to save money.
Answer these questions to help you gain a better understanding of your attitude toward money:
• What motivates you to spend money?
• What kinds of things do you buy?
• Are there certain instances in the week, day, month or year when you spend more money?
• How do you pay for your purchases, with cash, debit card, or credit?
The reason for asking yourself these questions is to get your mind wondering if you are spending too much money or if you spend money unnecessarily. Read more