Posts by arthart

Reconciling your bank statements is a crucial financial task that ensures your records match those of your bank. This process helps detect discrepancies, prevent fraud, and maintain accurate financial statements. Here’s a step-by-step guide to mastering bank reconciliation like a pro. 1. Gather Your Documents Before you begin, collect all necessary records, including: Your latest…

The chart of accounts (COA) is the backbone of a company’s financial system, serving as an organized framework for recording transactions. Whether you’re managing a small business or a large corporation, understanding the chart of accounts is crucial for maintaining financial clarity, ensuring accurate reporting, and supporting sound decision-making. What Is a Chart of Accounts? A chart of accounts is a…

Choosing the right accounting method can significantly impact your business’s financial reporting, tax obligations, and overall financial strategy. The two primary accounting methods—cash accounting and accrual accounting—each have their advantages and drawbacks. Understanding how they work and which one suits your needs best is essential for making informed financial decisions. What Is Cash Accounting? Cash accounting is…

When it comes to managing finances, the terms “bookkeeping” and “accounting” often get tossed around interchangeably. While they’re closely related, they’re not the same thing. Each plays a distinct role in keeping the financial wheels turning, whether for a small business, a multinational corporation, or even personal budgeting.   Bookkeeping: The Foundation Bookkeeping is the…

Bookkeeping is the backbone of any successful financial system, whether for a small business, a large corporation, or even personal finances. At its core, bookkeeping is the process of recording, organizing, and managing financial transactions. These transactions include sales, purchases, payments, and receipts—essentially every movement of money in and out of an entity. While it…

Tax season can be stressful for business owners, especially getting your books in order at the end of the year. If your recordkeeping isn’t in order, you may be in for a difficult time. As you wrap up the current year, take the time to review your business operations and determine what areas could use…

It is becoming more common for small business to outsource their bookkeeping services mostly because of cost savings and efficiency. Accurate and timely accounting is important to business success, however, hiring someone to do it in-house usually requires some of the business owner’s time and involvement. Unless you are a trained financial professional you may…