Category Archives: Bookkeeping

Small Business Accounting Software Start for Free

Most accounting software was designed with non-accountant business owners in mind, which means setup should be fairly straightforward. Still, some accounting programs are more user-friendly than others, and Wave Accounting is among the easiest for first-time business owners to configure. Wave Accounting imposes fewer limits than most of its competitors on everything from users to […]

Types of Contra Accounts List of Examples Explanations Definition

Examples of revenue contra accounts are Sales Discounts, Returns and Allowances. Key examples of contra asset accounts include allowance for doubtful accounts and accumulated depreciation. Accumulated depreciation reflects the reduction in value of a fixed asset. Last, for contra revenue accounts there are sales discounts, sales allowances, or sales returns. Contra Account For its day-to-day […]

Accounting Equation Explained Definition & Examples

A strong owner’s equity can signal a healthy, growing business, making it an attractive investment opportunity. For example, Apple’s consistently rising owner’s equity has contributed to its reputation as a solid long-term investment. If a company wants to manufacture a car part, they will need to purchase machine X that costs $1000. Understanding the Core […]

Adjusting Entries for Liability Accounts

The Globe and Mail suggests talking to your lender about your debt repayment plan should interest rates rise. It may also be time to look at your business plan and make sure it can accommodate rate increases. Otherwise, staying profitable and growing your business could prove challenging. The following https://www.simple-accounting.org/ example will explain interest payable […]

Get an Individual Taxpayer Identification Number ITIN to file your tax return

If none of the in-person options work for you, you can still submit your application by mail. We strongly suggest that you get certified copies of all your documents instead of forms and associated taxes for independent contractors sending originals. We also suggest you send the application and documents by certified mail so you’ll have […]

Income Statement: How to Read and Use It

There are situations where intuition must be exercised to determine the proper driver or assumption to use. Instead, an analyst may have to rely on examining the past trend of COGS to determine assumptions for forecasting COGS into the future. Please download CFI’s free income statement template to produce a year-over-year income statement with your […]

Master Your Finances With Our Chart of Accounts Guide for Small Business Owners 2024

Creating a chart of accounts not only shows a snapshot of your company’s financial health, it provides lenders and potential investors with all the information they need to know. This is crucial if you plan on applying for loans, investment, and funding when you expand. The income statement (or profit and loss statement) shows a […]