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Don’t know your debits from your credits? Here’s a quick primer on how basic bookkeeping works and an easy way to understand debits and credits.

First, know that debits are not “deductions” and credits are not “increases”. Debit and credit are the names of the columns on bookkeeping ledgers (debit is the column on the left and credit is the column on the right). In double entry accounting (bookkeeping) the sum of each column must equal the other. In other words, the sum of all of the debits must equal the sum of all of the credits. By making sure that the sum of each column equals the other, the bookkeeper can eliminate arithmetic errors. Read the rest of this entry »

If you were driving 80 miles an hour, in the dark, with your lights off, heading towards a cliff, would you like someone to yell, “STOP?”

OK.

Stop!

Do you produce financial reports - the balance sheet and income statement - every week?  Do you analyze sales, costs, cash flow, and debt every week?  If not, you may be heading for the cliff. Read the rest of this entry »

Whatever your responsibilities are in your business or organization, you need accounting skills to perform at your best. If you are in sales, you learn your product’s features and how to show them to buyers. Those features include the cost or value proposition and how it affects your customers’ buying decisions.

Marketing managers study how to find and appeal to a product’s target groups. Working up price points can mean some detailed cost analysis. Production managers learn how to plan workflow to control costs. Senior managers use financial statements to speak to those outside about their business’s prospects. Whatever your management level, you need to Read the rest of this entry »

More and more small businesses are cropping up. Unlike the multi-million dollar companies, not everyone can hire professional payroll personnel. On paper accounting is headed to extinction and now-a-days small businesses require accounting payroll software solutions that help them save time and money simultaneously.

Business accounting software solution checklist: Read the rest of this entry »

Invoice factoring is probably the most popular form of business financing. Companies across the United States are using invoice factoring to eliminate the need for traditional loans, and to increase efficiency. Many industries rely heavily on invoice factoring, and since it has proven itself time and time again, they should. Every industry from medical to transportation can benefit from invoice factoring. If you’re not convinced read below and find out the top 5 reasons to obtain invoice factoring services. Read the rest of this entry »

Accounts receivable factoring is one of the most commonly known terms in the business world. Businesses everywhere understand that accounts receivable factoring is the easiest and best way to obtain funding. For years businesses have taken advantage of them factoring because of its speedy approvals and ease of qualification. But there are some dangers that lie within accounts receivable factoring. It is important to understand what these dangers are and how to avoid them so that you can reap the full benefits from your business funding. Things like varying interest rates, deceitful contract terms, instable loans and others will have a dramatic impact on your business. It is prudent for long term success to analyze and pre pare when you acquire accounts receivables factoring. Read the rest of this entry »

India is one of the oldest civilizations in the world. Their history goes back over 10,000 years. India is the largest democracy in the world. As of July, 2007, the Central Intelligence Agency for the United States Government estimated that the population of India is over one billion, one hundred twenty nine million people. In contrast, the population of the United States is estimated to be a little over three hundred two million people. That’s 129,000,000 versus 302,000,000 people; India has over four times the population of the U.S. in a geographic area lightly more than one-third the size of the U.S. Read the rest of this entry »

Small Business Record-keeping involves maintaining accurate accounts and evidence of all of your business’ transactions. You should always keep records in your business because it allows you to have a general idea of how your business is doing. For example, you might determine what products are being sold the most, which ones are not selling well, and how much profit you are making per sale. In addition, records will provide you with the data needed to prepare financial statements and tax returns for your business. Read the rest of this entry »

When my daughter asked me if I would be interested in helping her in her online business I jumped right on it.  What a way to make some money.  Then I thought okay, that’s great, but how would I get that money. She told me about PayPal.

She showed me the way to the site. At first I thought there was no way I could do this.  It was easy to understand and simple to set up. I didn’t feel the least bit unsure about starting my account. Read the rest of this entry »

Ever heard of the saying that “a sale is not a sale until the cash is in your bank account?”

If we you were paid for your sales the moment that you made them, you would never have a cash flow problem.

Unfortunately, that does not always happen in many businesses.  Credit is a privilege (not a right) and too many customers seek to abuse this trust and often never pay for the service or product you have supplied. Read the rest of this entry »