Cash basis accounting – a simple way of bookkeeping
Cash basis accounting is a simple method of recording your business transactions. One without accounting knowledge can accomplish bookkeeping tasks using this method. Under cash basis accounting, you record income as you receive money from your customers and expense as you pay it. For small businesses that don’t rely on monthly financial statements, we recommend this method for recording transactions throughout the year because of its simplicity and low cost.
Small business bookkeeping
This article provides an overview of small business bookkeeping to help small business owners understand the basics of bookkeeping in a small business environment.
Changes to Canada Pension Plan for 2012
Canada Pension Plan (CPP) will be implementing a series of changes effective in 2012. If you are responsible for preparing payroll cheques, here are the changes you should be aware of regarding the withholding of CPP contributions for employees between the ages of 60 and 70.
Choosing a bookkeeper for law firm
An important decision every lawyer faces in setting up their practice is how to ensure their books and records are maintained in accordance with the requirements of the Law Society.
Books and records for law firms
According to the requirements of the Law Society, you must keep the following records for at least ten full fiscal years:
List of documents law firm bookkeeper needs
Generally, accountants or bookkeepers need the following documents to accurately maintain books for law firm.
The accounting equation
In a double-entry system, for every debit entry there must be a credit entry and vice versa. This leads us to the basic accounting equation:
Assets = Liabilities + Owners' Equity
The above equation shows how assets are financed: either by borrowing money from someone (liabilities) or by paying your own money (owner’s equity).
Accrual accounting versus cash accounting
“I haven’t collected payments from my customers. Why should I pay the sales tax now? It is unfair!” Business owners are often confused because they don’t understand the sales tax rules are based on accrual accounting.
Perpetual inventory system and periodic inventory system
There are two main types of inventory accounting systems: the perpetual system and the periodic system.
Under the perpetual inventory system, the business maintains a running record of inventory and cost of goods sold. This system achieves control over expensive goods such as jewelry, furniture and automobile.
Differences among proprietorship, partnerships, and corporations on accounting and taxation
There are three common types of business organizations: proprietorship, partnerships, and corporations. In some cases, the accounting procedures of a business depend on which organization form the business takes.