A capital expenditure is assumed to be consumed over the useful life of the related fixed asset. In other words, the cost of capital expenditures is spread out over many periods or years, whereas revenue expenditures are expensed in t... Read more
With this method, you record the profit and loss when money changes hands. In other words, your business does not record the income or payout until it gets made. However, an owner can prepare an income statement to show to stakeholders, attract new... Read more
We only use this data for making our content better and more relevant to our visitors. If you wish to opt-out of us collecting your information, please click on this link. Usually, these applications have accounts (categories) already set up when yo... Read more
If you want to track business expenses in Excel, you’ll need to create a spreadsheet and fill in the appropriate information. You can either create your own spreadsheet or use a built-in Excel template. Though Excel also has template options,... Read more
There are free business checking accounts that waive monthly fees or exclude them altogether. If you’ve ever had a personal savings account, you already know the basics of a business savings account. They earn more interest on your funds than... Read more
It is a chart that shows the profit or loss at all levels of output and sales. This chart plots a single line depicting the profit or loss at each level of activity. The procedure of computing break-even point of a multi-product company is a little... Read more
In addition to a mixture of hard and soft skills, your bookkeeper also needs to be honest, open, and trustworthy and to fit in with your overall organizational culture. TestGorilla’s Numerical Reasoning test is designed to measure a candidate... Read more
Capital gains have historically been taxed at a lower rate than ordinary income. A trial balance is a list of all the accounts in your business with their corresponding debits and credits. Accounts and bookkeepers used the trial balance report with... Read more
Many small business owners love the software but struggle with its customer service. If you know you’re going to need customer help based on your accounting or software experience, you might consider other options on the list that have a bette... Read more
When you’re stuck in the minutiae of reconciling your transactions, this won’t feel like “seven easy steps”. You can’t run a healthy, successful business without having your books in order. It’s like driving a car... Read more
