Business Loans

The sample journal entries illustrate what information is commonly written in an accounting ledger. Basic Records In any type of business, it is important to know how much money is coming in and how much money is going out. Money coming into the business is revenues; money going out is expenses. Cash Receipt Journal This [...]

Double-entry bookkeeping is an accounting technique that records each transaction as both a debit and a credit, thus making it easier to double-check your financial transactions. To illustrate: You conduct a sale but do not collect the payment. Your receivables would increase. Your sales revenue would also increase. You buy from a supplier on credit [...]

If you are using a cash-based accounting method, you record a sale when you receive payment. In this case, you only need to keep two journals (disbursements and receipts) and a ledger at the end of the month. There are two terms you will learn soon enough as a business owner: accounts receivable and accounts [...]

Your business records should be kept simple. If you keep your records in a format you can easily understand, you can use them for analyzing trends in your business and be able explain the figures if you are ever audited. Your books should be accurate and error free. The records should be error free, since [...]

Bookkeeping is an important part of running your business. If you do not keep accurate records of your business expenses, you will not be able to prove them and therefore claim deductions. An auditor may disallow the deductions, burdening you with back taxes and penalties. If you do not keeping accurate records, you cannot be [...]