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1. #BENCH BOOKKEEPING COMPANY UPDATE#
2. #BENCH BOOKKEEPING COMPANY SOFTWARE#
3. #BENCH BOOKKEEPING COMPANY TRIAL#
4. #BENCH BOOKKEEPING COMPANY SERIES#
5. #BENCH BOOKKEEPING COMPANY DOWNLOAD#

While there are no laws enforcing these standards, most lenders and business partners in the United States will require that you adhere to GAAP.

#BENCH BOOKKEEPING COMPANY SERIES#

That’s what generally accepted accounting principles (GAAP) are: a series of standards and procedures that accountants at all companies must adhere to when preparing financial statements.Ī non-governmental body called the Financial Accounting Standards Board sets the GAAP. Suggested reading: The ROI of Hiring a Bookkeeper Generally accepted accounting principles (GAAP)Įvery company is different, but in order to make accurate financial comparisons between companies, we need a common language to describe each of them.

#BENCH BOOKKEEPING COMPANY SOFTWARE#

Financial statements can tell you what your most profitable months are, how much money you’ve spent on supplies, and what the total value of your business is.Īccounting software can help you generate financial statements easily, or you can have a bookkeeper do it for you. Let’s say you’re a self-employed surfing instructor who bills clients for surfing lessons. Together, they tell you where your business’s money is and how it got there. There are three main types of financial statements: the balance sheet, income statement, and cash flow statement. Suggested reading: A Beginner’s Guide to The Accounting Cycleįinancial statements are reports that summarize how your business is doing financially. This final step includes summarizing all your financial information into succinct reports for easy review.Īccounting software takes your accounting information and automates most of these rules and processes, so we’re going to skip over the gritty details of the accounting cycle and talk about the end product: financial statements. Finally, all the information you’ve collected is converted into your financial statements. This information is now ready to be turned into financial statements.

#BENCH BOOKKEEPING COMPANY TRIAL#

After entering in adjusting entries, you’re left with an adjusted trial balance. For example, if a client is late on paying an invoice and you offer a 5% discount to help them pay, you would enter the discount as an adjusting entry, as opposed to changing the entry you’ve already made.

#BENCH BOOKKEEPING COMPANY UPDATE#

When you need to update entries you’ve already made, you prepare adjusting entries. Prepare adjusting entries at the end of the period.At the end of a reporting period, list all of your business’s accounts and figure out their balances. But more common is double-entry accounting, which records each transaction in two accounts: where money is coming from and where it’s going. Some businesses use single-entry accounting where only the expense or revenue is entered. Journal entries include three components of a transaction: when it happened, what it was for, and how much it was. It’s time to take those documents and start making journal entries for your transactions. Collect any invoices, bank or credit statements, and receipts from business transactions. The accounting cycle has six major steps:

Recording business transactions this way is part of bookkeeping.īookkeeping is the first step of what accountants call the “ accounting cycle”: a process designed to take in transaction data and spit out accurate and consistent financial reports. Business transactions-any activity or event that involves your business’s money-need to be put into your company’s general ledger. The accounting cycleĪccounting begins with recording transactions. However, bookkeeping is more concerned with recording everyday financial transactions and operations, while accounting puts that financial data to good use through analysis, strategy, and tax planning. It tells you whether or not you’re making a profit, what your cash flow is, what the current value of your company’s assets and liabilities is, and which parts of your business are actually making money.Īccounting and bookkeeping are both part of the same process: keeping your financial records in order. You can think of accounting as a big machine that you put raw financial information into-records of all your business transactions, taxes, projections, etc.-that then tells you a story about the financial state of your business.Īccounting is how you get a clear picture of your financial position. A simple definition of accountingĪccounting is how your business records, organizes, and understands its financial information.

#BENCH BOOKKEEPING COMPANY DOWNLOAD#

But if you want to jump straight to the how-to, you can download our free guide to small business accounting. In this post, we’ll cover the basics of accounting, from budgets to other accounting functions. The good news is that with the right people, tools, and resources, accounting doesn’t have to be a black hole for your time. But what exactly is accounting? What value does it provide your business? And how much time is it going to require?