Author: moneyinstructor

The accounts receivable side of the accounting sheet is the side many businesses must allocate an entire department’s resources towards maintaining, monitoring, and collecting. Quite often, businesses have failed not because they weren’t profitable, but because they weren’t collecting on sales and their cash flows were inadequate. That’s an awfully hard place to be, to realize your … Continue reading Understanding Accounting: Accounts Receivable

By now you should have a little better understanding of the accounting process, some of the more important parts, and a glimmer of hope in your ability to perform the bookkeeping requirements. Okay I’m kidding, you don’t have a clue about the bookkeeping function; you just simply want to keep better tabs on your accountant! Well, … Continue reading Understanding Accounting for your Businesses: A Green Light for Success

Never in history, has one particular contribution served to shape and mold business in the way that accounting has done. Since the inception of trade and business, civilization understood the need for accurate records. What we were lacking was the means for a standard of accurate record keeping. Enter Luca Pacioli. This Franciscan monk was the father of double … Continue reading History of Accounting: Overview

Mention depreciation in front of the vast majority of the American public, and expressions of distaste right on down to a pure dislike of the word, will emerge. For the majority of the public, however, depreciation never applies to their situation, except when the get ready to trade their vehicle and it has depreciated too much … Continue reading Basic Accounting: What is Depreciation Expense?

How to Determine the Accounts your Small Business Needs The most important question to be answered, in the process of determining your account listing need, is what type of business you operate. Professional and service industries generally use a completely different set of accounts, to say, a manufacturing or retail sales business. All account listings however, … Continue reading Small Business Accounting: Determine, Setup, and Use the Accounts

If you were completely ignorant of an accounting system, and the bookkeeping necessary to put financial information into proper places, what would you assume you needed? Chances are, you would look for the checkbook and feel sure that it contained all the necessary information you would need to produce a financial picture of your monetary worth. But, … Continue reading What Pieces of Information are needed for Bookkeeping?