Proccounting Inc

This article provides an overview of small business bookkeeping to help small business owners understand the basics of bookkeeping in a small business environment.

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.

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.

According to the requirements of the Law Society, you must keep the following records for at least ten full fiscal years:

Generally, accountants or bookkeepers need the following documents to accurately maintain books for law firm.

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).

“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.

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.

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.

Debits and credits are the backbone of double-entry accounting system. In double-entry accounting, a company’s assets are equal to its liabilities plus owner’s equity.