Financial Consultants: Bookkeeping vs. Accounting: Why You Should Care
What is Bookkeeping? Bookkeeping is the recording of daily transactions that cyclically follow a defined process. Bookkeeping breaks down into parts such as Accounts Payable, Accounts Receivable, and Payroll. Think of bookkeeping as the foundation of your financial data. What is Accounting? Accounting is the setting up of the Bookkeeping system, monitoring the system that […]
Changing Bookkeeping Services Like You Change Your Underwear
Have you said of these things before? I’ve changed bookkeepers five times in the last few years. I just can’t seem to get the financial information I need quickly enough. Bookkeepers are the same, they don’t understand what I want. The story I hear most often from frustrated business owners. “I hired a new bookkeeper […]
Cash Flow Statement: What Is Its Purpose?
Three Sections of the Cash Flow Statement Before we discuss the purpose of a cash flow statement, let’s first talk about what it is. The three sections of the cash flow statement are operating, investing, and financing. There are two methods to use when preparing your cash flow statement: direct and indirect. Cash Flow Statement […]
3 Major Cash Flow Activities
There are three major cash flow activities in each business. These consist of Operating, Financing, and Investing. You’ve heard these terms before, but you’re not clear about how they appear in your small business. After all, you don’t have investments, and you’re running your business with credit cards and a small line of credit. It […]
7 Cash Flow Management Mistakes To Avoid
Most Common Cash Flow Mistakes Working with small businesses for the last 20 years has brought with it some exciting experiences. One of the most common experiences is the cash flow management mistakes that business owners make. You might think that only the inexperienced business owner has these near-death experiences with their companies. Still, I […]