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Balance your checkbook every month

These days, most people don’t balance their checkbooks.  Most people don’t even keep checkbooks anymore.  Big mistake. Benefits of balancing your checkbook Discover bank errors. Identify bank fees. Find your mistakes. Discover undeposited checks that may have gotten lost in the mail.. Discover frauds against your account. Keep track of your bank balance. How to […]

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A simple accounting spreadsheet for Microsoft Excel

Click here to download the spreadsheet Click here for YouTube video explaining how to use the spreadsheet. Want to learn more about Excel? My free YouTube course on Excel starts here. I designed the spreadsheet for a simple business that does 355 transactions a year or less. If you do more transactions, it shouldn’t be […]

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Bookkeeping for Small Businesses DIY Tips (Guest Post)

Description: Article covers issues and tips that business owners should be aware of while doing their accounts in-house. Many business owners are caught between outsourcing their bookkeeping versus preparing their accounts in-house. The conflict arises if the business owner does not have either the necessary skills to do the work himself or does not have […]

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Your accounting system

Your online business must have an accounting system.  It can be sophisticated, or it can be very simple, but you need one.  Your accounting system will: keep track of critical tax information provide a scorecard of useful information to help you track your performance prevent errors and fraud. If I’ve not persuaded you so far, […]

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Accountants like to talk about transparency, the principle that financial statements should give a clear and accurate portrait of a company’s performance. Accounting is important because you need a transparent view of your business’s performance.  What are your sales?  Your expenses?  How profitable is your company?  What assets do you own?  How much cash do […]

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A simple bookkeeping spreadsheet in Google Drive

I developed a simple Google Drive template that will allow you to keep a set of books for a simple business.  This will work for a simple business that has a few similar transactions a month.  You can access the template here: The following video shows you how to use the template: Here is […]

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The balance sheet explained

A Balance Sheet lists a company’s assets, liabilities, and owners” equity at a given point in time.  It follows the accounting equation and will help you understand a company’s solvency and liquidity. Assets = Liabilities + Owners’ Equity. The Balance Sheet is sometimes called the Statement of Financial Position.  The name “balance sheet” comes from the fact that a […]

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Do you know your whales and high-rollers?

There’s much ado these days about Zynga.  I love Zynga’s model of selling “virtual” products which just happen to be costless.  It’s equivalent to selling bottled water or canned air. Another interesting aspect of Zynga is the whale phenomenon.   A small population of Zynga’s customers account for the vast majority of its revenues.  In Zynga’s case, […]

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The Accounting Equation: Assets = Liabilities + Owners’ Equity

Your business is built on the accounting equation: Assets = Liabilities + Owners’ Equity Assets are what your business owns.  Liabilities are what your business owes.  The difference between these what you – the owner – actually own: owner’s equity. Suppose your business has $100,000 in assets and $30,000 in liabilities.  Then $70,000 of your […]

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Should you keep separate books for your taxes? Yes.

There are many old jokes about the businessman who keeps two sets of books – one correct set, and the other for taxes.  The old joke is – in fact – true.  This is how we accountants do it. Congress designed tax rules  to compute your tax bills.  They contain many special rules designed to […]

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