As a standard office procedure, bank reconciliations are completed monthly.
Even though the bank statement may arrive 3 (or more) days after the month end, transactions resulting from the bank reconciliation should be posted in the same month covered by the Bank Statement.
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Accounting and Bookkeeping are big subjects with lots of material. It doesn’t have to take years to master however.
For the rookie who has finally decided to take a formal course, we’ve assembled some savory advice to help keep things in perspective.
Bookkeeping is the language of business. As with learning any new language muscle memory is very important. Take some time to review and study the key definitions – specifically, the 5 accounting classifications. It’s not that hard . . . there are only 5 of them!
By reviewing the definitions regularly and keeping them top-of-mind when working through the subject, you’ll soon understand them, usually within a few days.
In our course, FastTrack Bookkeeping, we include a desktop reference card bearing...
It's one thing for staff in a retail store to pocket merchandise, but another thing entirely when trusted office workers rip you off. Office theft is an unfortunate reality.
Several years ago I was hired by a local non-profit organization to convert their manual paper-based accounting system to a computerized platform. Their bookkeeping systems were antiquated and lacked internal controls which was criticized in a recent audit. They needed to make big changes in how they managed their books.
After I met with each staff member to learn about their job functions related to record-keeping, I could see exactly where the lack of internal controls lay.
help prevent office theft"
Internal controls in any organization, are measures put in place to prevent problems before they occur. In this respect, we say they are “preventative.” For instance, numbering all sales invoices ensures that the sales are properly accounted for.
When I think of the Balance Sheet, I'm reminded of a meeting I had with a client in 2003. He operated a monument business (you know . . . tombstones, memorials, markers). His name was Terry and he had been in business for a little over 1 year (15 months to be exact).
On average, Terry was working 60 hours per week, but he had no idea if he was making money or losing his shirt. He was considering closing his business and getting a job. He called me up to get my advice.
I agreed to meet only if his books were up-to-date and he was able to present his financial statements. This was no problem for Terry because from day one, he had been purchasing the services of a local bookkeeper to keep his books in order. He HAD been listening in my classes!! :)
When we met, I spent about an hour reviewing his operation, trying to understand all the variables of his business. Afterwards I delved into his numbers.
When he presented his monthly financial statements, I noticed right away that the...
Last month I met with three clients to discuss, among other things, their cashflow – or at least for one of them . . . the lack thereof.
As a business consultant, to meet with a client and NOT ask about their Cashflow would be like you visiting your doctor and NOT being asked how you are feeling!
Cashflow is the lifeblood of any business. A savvy business owner is well advised to get a firm grasp on the concepts and best practices of Cashflow Forecasting.
In this article I will introduce you to our 3-part process for developing an effective and accurate Cashflow Forecast. It involves Activities Planning, Collections Forecasting and finally, Cash Management.
Just to be clear, what I’m referring to in this article is the cash coming into your business, AND the cash going OUT.
When many people first hear about Cashflow Forecasting, their mind immediately races to forecasting sales and collections – which is only a part of the equation – and a small part at that!...
The one thing that Depreciation, Amortization and Depletion all have in common is that they all refer to Assets. More specifically, they record the value of an asset that gets used up over time.
Depreciation specifically refers to most tangible assets such as equipment and automobiles, but such tangible assets specifically exclude natural resources.
Depletion is the form of depreciation that refers to natural resource assets such as mines, gravel pits, oil wells and the such.
Finally, Amortization is a form of depreciation that applies to intangible assets that you cannot touch or feel, such as goodwill.
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