Category Archives: Bookkeeping
What is the accrual basis of accounting?
Accrual accounting can also be more helpful if you’re looking to scale your business or attract investors because it provides a clearer picture of long-term profitability. In this case, it’s obvious that Company Y becomes a debtor to Joe for five years. Therefore, to carry an accurate recording of Joe’s bonuses, the company must make […]
Why Bookkeeping is Crucial for Startups: Best Practices Revealed
For QuickBooks Live’s bookkeeping services, you can expect to pay Certified Bookkeeper $200 per month minimum. You will also be required to pay a “clean-up fee” to begin your bookkeeping membership; however, this price is dependent on tax filing status, sign-up month, and business start date. By maintaining these financial records, startups can make informed […]
Closing Entries, Sales, Sales Returns & Allowances in Accounting
Just like in step 1, we will use Income Summary as the offset account but this time we will debit income summary. The total debit to income summary should match total expenses from the income statement. Lastly, prepare a post-closing trial balance to verify that the balances of the permanent accounts are correct and that […]