<?xml version="1.0" encoding="UTF-8"?><rss version="2.0"><channel><title><![CDATA[SmallBusinessNotes.com Recent Articles: Accounting]]></title><link>http://www.smallbusinessnotes.com/business-finances/accounting/</link><description></description></channel>
<item><title>Sample Late Payment Notice</title><link>http://www.smallbusinessnotes.com/business-finances/sample-late-payment-notice.html</link><description><![CDATA[This free sample Late Payment Notice can be easily modified to suit your business' billing needs. Late Payment - Moderate Tone Letter - 1 - Product...]]></description><pubDate>January 27, 2011 11:50 AM</pubDate></item><item><title>Service Invoice Template</title><link>http://www.smallbusinessnotes.com/business-finances/service-invoice-template.html</link><description><![CDATA[This free Service Invoice Template can be easily customized to fit your business' billing needs and includes a detailed breakdown for materials, parts and labor.Service Invoice...]]></description><pubDate>January 27, 2011 11:34 AM</pubDate></item><item><title>Free Sample Invoice Template</title><link>http://www.smallbusinessnotes.com/business-finances/free-sample-invoice-template.html</link><description><![CDATA[This free sample Invoice Template can be easily modified to serve a wide variety of billing needs. Invoice Template Easy to Use...]]></description><pubDate>January 27, 2011 11:31 AM</pubDate></item><item><title>Profit and Loss Spreadsheet: 12 Month Projection</title><link>http://www.smallbusinessnotes.com/business-finances/profit-and-loss-spreadsheet-12-month-projection.html</link><description><![CDATA[ This free Profit and Loss Spreadsheet allows you to create a detailed 12 month projection. An Excel file, this profit and loss template comes with clear directions and is easily customizable to fit the needs of your company. Profit and Loss Projection by Month for 12 Months...]]></description><pubDate>January 27, 2011 11:18 AM</pubDate></item><item><title>Profit and Loss Template for 3 Year Projection</title><link>http://www.smallbusinessnotes.com/business-finances/profit-and-loss-template-for-3-year-projection.html</link><description><![CDATA[Create a 3 year profit and loss projection for your company with this free Profit and Loss Template. Simple Profit and Loss Projection for 3 Years...]]></description><pubDate>January 27, 2011 11:10 AM</pubDate></item><item><title>Profit and Loss Statement Excel Template</title><link>http://www.smallbusinessnotes.com/business-finances/profit-and-loss-statement-excel-template.html</link><description><![CDATA[Use this free Profit and Loss Statement Excel template to easily track sales revenue, operating expenses, taxes, net profit and more. Profit and Loss Statement Excel Template...]]></description><pubDate>December  3, 2010  4:35 PM</pubDate></item><item><title>Pay Slip Template </title><link>http://www.smallbusinessnotes.com/business-finances/pay-slip-template.html</link><description><![CDATA[This pay slip template can be downloaded into Microsoft Word for easy editing.Pay Slip Template...]]></description><pubDate>December  7, 2010 11:47 AM</pubDate></item><item><title>Invoice with Tax Calculation Excel Template</title><link>http://www.smallbusinessnotes.com/business-finances/invoice-with-tax-calculation-excel-template.html</link><description><![CDATA[This sample Excel invoice template includes a section for tax calculation.Invoice with Tax Calculation Excel Template...]]></description><pubDate>December  7, 2010 10:46 AM</pubDate></item><item><title>Accounting Systems</title><link>http://www.smallbusinessnotes.com/business-finances/accounting-systems.html</link><description><![CDATA[ Your accounting system should provide an accurate picture of your business and how it is doing. Setting up a good accounting system and understanding the numbers produced can make a major difference in how your business fares in the long run. The financial statements produced from your accounting system will help you with: Pricing Your Product Accurately Pricing your product is the first single most important thing you have to do in business. It's a simple equation, which says that you have to charge more than it costs you, right?? So tell me, what about paying back that loan...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Selecting an Accountant</title><link>http://www.smallbusinessnotes.com/business-finances/selecting-an-accountant.html</link><description><![CDATA[ Accounting is the story of a business told in the language of numbers. Some people have a natural understanding of numbers, but it is not something that comes naturally to everyone. Thus, even if you have learned the basics and can prepare your own budgets or monthly financials, it is very possible that you will want an accountant at some point. You might need someone to help you with a budget or cash flow forecast; prepare your tax returns; external financial statements; or provide assistance with a long-term financial plan. When you decide to hire an accountant, you will...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Payroll</title><link>http://www.smallbusinessnotes.com/business-finances/payroll.html</link><description><![CDATA[ If you have an accounting system and are using payroll, your entries should be in good order. However, you may need some understanding of exactly what that system is doing for you. If you're doing payroll by hand, you will calculate and record the components described below. Payroll includes: the wages themselves, the taxes you withhold, and taxes that you have to pay that you don't withhold. Gross wages are debited to the wages expense account, divided between direct and indirect labor. (Gross wages for people actually producing your goods or providing your services are direct expenses; gross wages...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Burden of Proof</title><link>http://www.smallbusinessnotes.com/business-finances/burden-of-proof.html</link><description><![CDATA[ The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them. Generally, taxpayers meet their burden of proof by having the information and receipts (where needed) for the expenses. You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. Additional evidence is required for travel, entertainment, gifts, and auto expenses....]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Deposits</title><link>http://www.smallbusinessnotes.com/business-finances/deposits.html</link><description><![CDATA[ Another item that has its own spot in your books is deposits you pay for various things, from workers compensation to a deposit with the post office for express mail. These are items that will be returned to you when you finish using the service. Technically, they are holding your money for you. These amounts all go into the account called deposits, which is under the Asset section of your Balance Sheet. &amp;amp;nbsp; Monthly Accounting Procedures Financial Management of a Small Business Financial Management Books...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Can a Debtor Avoid Payment by Declaring Bankruptcy?</title><link>http://www.smallbusinessnotes.com/business-finances/can-a-debtor-avoid-payment-by-declaring-bankruptcy.html</link><description><![CDATA[ By Peter Janovsky, Partner, Zeichner Ellman &amp;amp;amp; Krause LLP Consider the following scenario: Al owes his former partner, Sam, $2 million. Sam lent him the money when they started a business together. Sam commences a lawsuit against Al to recover the money, and Al says, &amp;quot;You're wasting your time. I'm judgment proof.&amp;quot; (That is, even if a judgment is obtained, Sam won't be able to collect anything because Al has no assets.) Sam reminds Al that he lives in a multi-million-dollar home, owns a Chris Craft boat and has a summer home in East Hampton. &amp;quot;Oh those,&amp;quot; Al laughs....]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Monthly Accounting</title><link>http://www.smallbusinessnotes.com/business-finances/monthly-accounting.html</link><description><![CDATA[ Here is a description of what you should to be doing monthly with your accounting records as well, as why you need to do it. Each item includes an explanation of the debits and credits used in your accounting records, although if you are using an accounting software application, the debits and credits are usually automatically handled for you. Accounts Payable Accounts Receivable Cash Discounts - Purchases Deposits Depreciation Expenses Paid by Cash Expenses Paid by Check Inventory Month End Adjustments Monthly Checklist Paper Trail Payroll Petty Cash Sale of Assets Sales and Customer Deposits Suspense You may also...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Petty Cash</title><link>http://www.smallbusinessnotes.com/business-finances/petty-cash.html</link><description><![CDATA[ Petty cash is handy to have for small purchases, but it needs to be accounted for correctly. Do a one-time entry in your books to set up the petty cash account. If you want $300 in the account, credit the bank account you are taking the cash from, and debit your petty cash account. Then put that cash in a box. Every time you take some out, keep track of what you have taken out, with a receipt, and at the end of the month you will have a list that looks like this: Supplies (coffee, paper) $25.00 Small...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Accounts Receivable</title><link>http://www.smallbusinessnotes.com/business-finances/accounts-receivable.html</link><description><![CDATA[ Accounts Receivables and sales operate much the same as Accounts Payables and your purchases. Under the accrual method, you will be entering sales as you earn them and invoice your customers. Have a simple chart that shows who owes you money each month with a beginning balance which equals last month's ending balance. Enter any payments they've made or new charges they've incurred, and come up with an ending balance. That must equal the amount you list as accounts receivable on your books. If it doesn't, you will need to figure out where the discrepancy is. &amp;amp;nbsp; Monthly Accounting...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Expenses Paid by Cash</title><link>http://www.smallbusinessnotes.com/business-finances/expenses-paid-by-cash.html</link><description><![CDATA[ Over the month you undoubtedly paid for some things with cash. The entry made is exactly the same as if you paid with a check. You should have a file of receipts, and most of them will match a check (it will be easier to confirm if you form the habit of writing the check number on the receipt). Any receipts that were paid with cash should have that noted on them, along with what the item or account number was. Same entry - debit the expense account, credit the cash account. If you have more than one cash...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Paper Trail</title><link>http://www.smallbusinessnotes.com/business-finances/paper-trail.html</link><description><![CDATA[ All of the numbers that are going into your books need to be backed up by something that will document them. You or someone else will at some point need to go back and recreate something you've entered, and you need a good clean system for keeping this information. If you are ever audited by the IRS, they will want to see the paper documentation behind your computer accounts. Keep a list of what makes up Accounts Payable, of customer deposits, accounts receivable, and your assets. Update your list monthly. You need to be able to justify each number...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Bookkeeping Systems</title><link>http://www.smallbusinessnotes.com/business-finances/bookkeeping-systems.html</link><description><![CDATA[ The basic building block to a good bookkeeping system is recording expenses and income in appropriate accounts. The tricky part is to make certain that whoever enters the data understands the true nature of each and every expense, and is able to put it in its right place. Even if you hire someone to do your accounting and bookkeeping, there are a number of items that you as the business owner should do periodically. Many small businesses have suffered serious losses when the owner lost track of the numbers and the trusted bookkeeper &amp;quot;borrowed money&amp;quot; and left for an...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Expenses Paid by Check</title><link>http://www.smallbusinessnotes.com/business-finances/expenses-paid-by-check.html</link><description><![CDATA[ Enter all the checks you have written into your computer software. In terms of how they affect your accounts, each entry will be a credit to (decrease in) cash and a debit to (increase in) the related expense account. Make certain each item is assigned to the correct expense account. As a convenience, it is nice to write the expense category in the check book when you write the check so you don't have any trouble remembering what this purchase was for. The exception to this is payments on loans, payments made on large equipment or fixtures, or additions...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Selling on Credit</title><link>http://www.smallbusinessnotes.com/business-finances/selling-on-credit.html</link><description><![CDATA[ Selling on credit means offering credit directly to your customers, not simply allowing them to use credit cards. It can be both a positive and a negative addition to your business. The positive side is obvious - the likelihood of increased business and convenience for customers. The negative side is the time consuming, but absolutely necessary, set up procedures and the very real possibility of that the customer will not pay. The first issue you need to address is whether or not selling on credit is even necessary for your particular business. There are businesses where it is nearly...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Accounts Payable</title><link>http://www.smallbusinessnotes.com/business-finances/accounts-payable.html</link><description><![CDATA[ At the end of any given month, you have things you have used or purchased, but have not paid for. These are listed as accounts payable. When you enter these bills into your computer system, your entry is a debit to the expense account and a credit to accounts payable. Each month, you need to make a list of items that were in accounts payable at the end of the month. When you are closing out the month, you will have paid these bills, which were in accounts payable the previous month, reducing your cash. Using your list, identify...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Inventory</title><link>http://www.smallbusinessnotes.com/business-finances/inventory.html</link><description><![CDATA[ Inventory is a current asset account, which means it is something you own that can be turned into cash quickly. When you purchase inventory, you do so out of cash, so one side of the entry is credit cash. The other side, to increase inventory, is debit inventory. The trick with inventory is knowing how to enter it in the books when you use it. Some common inventory items are materials. There should b a value of raw material in inventory, which matches what you paid for it. As you use your raw materials, you credit inventory, to reduce...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Month End Adjustments</title><link>http://www.smallbusinessnotes.com/business-finances/month-end-adjustments.html</link><description><![CDATA[ Once you are sure you have the right amount of cash entered in your accounting records, you are ready to check the rest of the books. The process is this. Look at your balance sheet, item by item. You've already done cash, and petty cash is a static account, so the next item is inventory. Check what your inventory was last month, total up what you know you've added to or deleted from it, and that should be your current total inventory. To make this easy, keep a list of what is in inventory. Each item should have a...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Depreciation</title><link>http://www.smallbusinessnotes.com/business-finances/depreciation.html</link><description><![CDATA[ Depreciation can be handled monthly or annually. It is important because things do, in fact, wear out and have to be replaced, and this is where that process is built into your accounting records. You start with a list of your assets. From this you need to estimate how much they will depreciate each year. Usually that is the price of the asset divided by the number of years you think it will last. To calculate your depreciation monthly, you divide the annual depreciation amount by 12. To give yourself an accurate idea of how your business is faring...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Sale of Assets</title><link>http://www.smallbusinessnotes.com/business-finances/sale-of-assets.html</link><description><![CDATA[ If you sell an asset, you have its value on a list of assets. You also should have a record of how much it has been depreciated. To enter the sale in your accounting records, you enter the cash from the sale in the cash account. Then, you balance that entry with a credit to the account for that particular asset, and a debit to the accumulated depreciation account. The difference is your gain, or loss, on that sale. As an example, you sell a truck which you bought for $6,780. It has depreciated by $3,200. You managed to...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Sales and Customer Deposits</title><link>http://www.smallbusinessnotes.com/business-finances/sales-and-customer-deposits.html</link><description><![CDATA[ Sales accounts are credit accounts. So when you want to increase the amount of sales you have made, you make the entry as a credit entry. You receive a check and put it in your account debit cash. The sale, if it is an item you have on hand and give to the buyer, you enter as an immediate sale. Credit sales the same amount that you debited cash. However, if you have just signed a contract, and have not actually done any work on that project this month, you have not yet earned that sale. You're just holding...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Suspense</title><link>http://www.smallbusinessnotes.com/business-finances/suspense.html</link><description><![CDATA[ If you are making all these entries and they don't balance, here is what you will need to do. First, check the number they don't balance by. It is possible you simply left out an entry. If that doesn't turn up anything, divide that number by two and see if anything becomes obvious. Next, divide it by nine and if it divides cleanly and evenly by nine, that indicates that you may have transposed an entry somewhere. Perhaps you entered 765 instead of 756. If you simply can't find the mistake, put the remainder that won't balance in suspense....]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Cash Discounts, Purchases</title><link>http://www.smallbusinessnotes.com/business-finances/cash-discounts-purchases.html</link><description><![CDATA[ In the sample chart of accounts there is an account number 7100 for cash discounts on purchases. If you are paying a material order and get to deduct 2% for paying early, by all means, try to do so. This is where that amount gets entered in the accounts. You debit the entire expense to the materials account as if you didn't take the discount, but credit the actual amount of your check to cash, and credit the remainder to the cash discounts account. This helps you see the value of paying early, and if you're in a position...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Balance Sheet</title><link>http://www.smallbusinessnotes.com/business-finances/balance-sheet.html</link><description><![CDATA[ The balance sheet is a snapshot of the company's financial standing at an instant in time. It shows the company's financial position, what it owns (assets) and what it owes (liabilities and net worth). A balance sheet is called that because it must always balance (i.e., assets = liabilities + net worth). The individual elements of a balance sheet change from day to day, reflecting the activities of the company. Analyzing how the balance sheet changes over time will reveal important information about the company's business trends. The trends over time can give you information about your ability to...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>The Assets Section of the Balance Sheet</title><link>http://www.smallbusinessnotes.com/business-finances/the-assets-section-of-the-balance-sheet.html</link><description><![CDATA[ Anything of value that is owned or due to the business is included under the Assets section of the Balance Sheet. Assets are shown at net book or net realizable value. Current Assets Current assets are those which mature in less than one year. The following accounts are included: Cash Cash pays bills and obligations. Inventory, receivables, land, building, machinery and equipment do not pay obligations even though they can be sold for cash and then used to pay bills. If cash is inadequate or improperly managed the company may become insolvent and be forced into bankruptcy. Include all...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Income Statement Example</title><link>http://www.smallbusinessnotes.com/business-finances/income-statement-example.html</link><description><![CDATA[ The following example shows some of the common elements of the Income Statement (also known as a Profit and Loss Statement). Sample Company Income Statement January 1, xxxx to December 31, xxxx Income &amp;amp;nbsp; &amp;amp;nbsp; Gross Sales 346,400 &amp;amp;nbsp; &amp;amp;nbsp;Less returns and allowances 1,000 &amp;amp;nbsp; &amp;amp;nbsp;&amp;amp;nbsp;Net Sales &amp;amp;nbsp; 345,400 &amp;amp;nbsp; Cost of Goods &amp;amp;nbsp; &amp;amp;nbsp;Merchandise Inventory, January 1 160,000 &amp;amp;nbsp; &amp;amp;nbsp;Purchases 90,000 &amp;amp;nbsp; &amp;amp;nbsp;Freight Charges &amp;amp;nbsp;&amp;amp;nbsp;2,000 &amp;amp;nbsp; &amp;amp;nbsp;Total Merchandise Handled 252,000 &amp;amp;nbsp; &amp;amp;nbsp; &amp;amp;nbsp;Less Inventory, December 31 100,000 &amp;amp;nbsp; &amp;amp;nbsp;&amp;amp;nbsp;Cost of Goods Sold &amp;amp;nbsp; 152,000 &amp;amp;nbsp;&amp;amp;nbsp;Gross Profit &amp;amp;nbsp; 193,400 &amp;amp;nbsp; Interest Income &amp;amp;nbsp;500 &amp;amp;nbsp; Total Income 193,900 &amp;amp;nbsp; Expenses...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Cash Flow Example</title><link>http://www.smallbusinessnotes.com/business-finances/cash-flow-example.html</link><description><![CDATA[ The first step is to determine operating cash flow. Start with net income and add back any non-cash items like depreciation. Then determine the changes in the balance sheet accounts that are part of the earnings cycle. Operating Cash Flow Net Income After Tax $34,000 Depreciation 40,000 Increase in Accounts Receivable (41,000) Increase in Inventory (18,000) Decrease in Accounts Payable (23,000) Increase in Accrued Expenses 4,000 Total Operating Cash Flow (4,000) This business actually used funds in its operations during the year. Where did the money come from? Let's look at the investing and financing activities to see what...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Aging of Accounts Receivable</title><link>http://www.smallbusinessnotes.com/business-finances/aging-of-accounts-receivable.html</link><description><![CDATA[ Accounts receivable are dollars due from customers. They are tallied by invoices and arise as a result of the operating cycle's process of selling inventory or services on terms that allow delivery prior to the collection of cash. Inventory is sold and shipped, an invoice is sent to the customer, and later cash is collected. The seller gives the customer delivery of goods or services prior to receiving cash payment. The receivable exists for the time period between the selling of the inventory and the receipt of cash. The time period, or terms must be stated clearly. Receivables exist...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>How to Manage Cash in Your Business</title><link>http://www.smallbusinessnotes.com/business-finances/how-to-manage-cash-in-your-business.html</link><description><![CDATA[ Managing the cash transactions in your business is important both for your own recordkeeping and for proving expenses on your tax forms. Here are some basic steps to help you keep your cash transactions records in order. To manage cash in your business: Use pre-numbered sales invoices or receipts to track sales to customers. Maintain a separate bank account for your business expenses (versus using your personal account). Reconcile your monthly bank statement for both deposits made and checks written. This lets the bank do part of your recordkeeping for you. Pay for all business expenses using checks from...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Balance Sheet Example</title><link>http://www.smallbusinessnotes.com/business-finances/balance-sheet-example.html</link><description><![CDATA[ The Balance Sheet shows a picture of the assets, liabilities and equity (net worth) of a business as of a specific day. The Balance Sheet shows two views of the business -- what resources you own (Assets) and the credit or investment that made it possible to acquire these resources (Liabilities and Equity). The basic equation of a Balance Sheet is Assets = Liabilities + Equity. In other words, what you own equals what you owe plus what the business is worth. The following example shows some of the common elements of the Balance Sheet. Sample Company Balance Sheet...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Cash Flow Worksheet</title><link>http://www.smallbusinessnotes.com/business-finances/cash-flow-worksheet.html</link><description><![CDATA[ Prepare your Cash Flow Statement by following the steps below: Determine Operating Cash Flow. Start with Net Income and add back non-cash items. Determine the change in all Balance Sheet accounts associated with daily operations. Determine Investing Cash Flow. Determine the change in all long term assets of the business. Determine Financing Cash Flow. Determine the change in all loans, equity accounts (exclusive of net income). Add the three components together to equal Total Cash Flow. Add Cash Balance at the beginning of the period, and you should get the Cash Balance at the end of the period. If...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Capital Generated Internally</title><link>http://www.smallbusinessnotes.com/business-finances/capital-generated-internally.html</link><description><![CDATA[ Internal sources of capital are those generated within the business. External sources of capital are those outside the business such as suppliers, lenders, and investors. A business can generate capital internally by accelerating collection of receivables, disposing of surplus inventories, retaining profit in the business or cutting costs. Before seeking external sources of capital from investors or lenders, a business should thoroughly explore all reasonable sources for meeting its capital needs internally. Even if this effort fails to generate all of the needed capital, it can sharply reduce the external financing requirements, resulting in less interest expense, repayment obligations,...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Cash Flow Statement</title><link>http://www.smallbusinessnotes.com/business-finances/cash-flow-statement.html</link><description><![CDATA[ The cash flow statement is used to analyze the cash income and expenditures during a designated time period. There are three major components of cash flow: operations, investing and financing. If you regularly do a monthly profit and loss (income) statement, you will be aware that there are certain items that may not affect your profit and loss statement for some time, such as: Substantial increase in inventory purchases; Increase in accounts receivable (money owed to you by customers); Reduction of credit by suppliers; Purchase of equipment; Unrecognized obsolescence of inventory (stale items); Bank's refusal to renew or extend...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Accepting Cash and Checks</title><link>http://www.smallbusinessnotes.com/business-finances/accepting-cash-and-checks.html</link><description><![CDATA[ Should your business accept personal checks or debit cards? What kind of identification can you ask customers to show when making purchases? How does the law regulate the acceptance of large sums of cash? Establishing payment and collection policies, and understanding the laws that regulate them, are indispensable steps toward protecting the financial health of your business. Accepting Large Sums of Cash While most business owners love the idea of receiving $10,000 in cash, it tends to make the IRS nervous. To help ease their jitters, the IRS requires that merchants use Form 8300 (pdf) for such large transactions,...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>The Liabilities Section of the Balance Sheet</title><link>http://www.smallbusinessnotes.com/business-finances/the-liabilities-section-of-the-balance-sheet.html</link><description><![CDATA[ Current Liabilities Current liabilities are those obligations that will mature and must be paid within 12 months. The following accounts are included: Accounts Payable Accounts Payable are obligations due to suppliers who have provided inventory or goods and services used in operating the business. Suppliers often offer terms, such as a certain percentage off if the bill is paid within a certain time period. Whenever possible you should take advantage of payment terms as this will help keep your costs down. To analyze the company's payables position and relationship with suppliers, there is a ratio/quality indicator, similar to the...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Developing a Set of Financial Statements</title><link>http://www.smallbusinessnotes.com/business-finances/developing-a-set-of-financial-statements.html</link><description><![CDATA[ To develop a set of financial statements, you have to start with a plan for how you will organize the information. This plan is called your Chart of Accounts. It is the framework upon which the financial statements are built. In your business, you have expenses that are going directly into your product - labor, materials, freight. There are also indirect costs that are more supportive (and ongoing) in nature - utilities, telephone, and the cost of bookkeeping. An easy way to distinguish the two is that direct expenses stop when you don't have work. Indirect expenses, also called...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Aging of Accounts Payable</title><link>http://www.smallbusinessnotes.com/business-finances/aging-of-accounts-payable.html</link><description><![CDATA[ Accounts payable are obligations due to trade suppliers who have provided inventory. They are the inverse of accounts receivable. A company's payables are a suppliers's account receivable. Like the company, suppliers are forced by the industry to offer terms. Since the supplier's competition offers payment terms, all suppliers will offer terms. Trade suppliers can refuse to ship additional inventory should the company become delinquent in payment of payables. Without inventory the company will be unable to sell. Happy trade suppliers, therefore, are critical to a company's success. Typically, the supplier will offer to ship inventory to a company on...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Collateral</title><link>http://www.smallbusinessnotes.com/business-finances/collateral.html</link><description><![CDATA[ Loans may be secured or unsecured. In a secured loan, the borrower pledges certain assets as collateral (security) to protect the lender in case of default on the loan or failure of the business. If the business defaults on the loan through failure to meet interest obligations or principal repayments, the noteholder (lender) assumes ownership of the collateral. If the business fails, the noteholder claims ownership of those specific assets pledged as collateral before the claims of other creditors are settled. Secured Loans In long-term borrowing, fixed assets such as real estate or equipment are usually pledged as collateral....]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Ways in Which an Accountant Can Help</title><link>http://www.smallbusinessnotes.com/business-finances/ways-in-which-an-accountant-can-help.html</link><description><![CDATA[ The majority of businesses will need the services of an accountant for certain tasks. Even owners with accounting backgrounds will need help from time to time. It is challenging enough to run the business, much less keep up with tax or benefit law changes. Here are some of the ways in which an accountant can assist your business: Prepare periodic financial statements and annual audit reports. Assist you in analyzing your financial statements, looking for problem areas or ways you could improve your financial management. Determine working capital and cash flow requirements. Help you develop a budget and a...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Income Statement</title><link>http://www.smallbusinessnotes.com/business-finances/income-statement.html</link><description><![CDATA[ An income statement shows all income and expense accounts over a period of time. It is also referred to as a profit and loss statement (or P &amp;amp;amp; L), From an income statement you can determine how much money your business made after all expenses are accounted for, i.e., how much profit your made. Here is an Example of an Income Statement. The basic format is that all the income sources are listed and totaled on the top of the statement, and all the expenses are listed and totaled next. The total of the expenses is subtracted from the...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Keeping Accounting Costs Down</title><link>http://www.smallbusinessnotes.com/business-finances/keeping-accounting-costs-down.html</link><description><![CDATA[ Accountants have various ways that they bill their time, depending on the type of service performed. An hourly rate is commonly used, although flat fees are often used as minimums and for types of services performed on a regular (monthly or quarterly) basis. Familiarize yourself with the type of billing used for the services that you are requesting assistance with. Hourly Rate Find out what the rate is for the services that are in fact billed this way, if you will be billed in 10 or 15 minute increments, and when the clock starts. Similar to attorneys, accountants will...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Sample Chart of Accounts</title><link>http://www.smallbusinessnotes.com/business-finances/sample-chart-of-accounts.html</link><description><![CDATA[ Asset Accounts Current Assets &amp;amp;nbsp; 1001 Cash in Bank &amp;amp;nbsp; 1003 Petty Cash Account &amp;amp;nbsp; 1005 Inventory &amp;amp;nbsp; 1008 Accounts Receivable &amp;amp;nbsp; 1012 Prepaid Expense Long Term Assets &amp;amp;nbsp; 1200 Land &amp;amp;nbsp; 1300 Buildings &amp;amp;nbsp; 1301 Accumulated Depreciation, Buildings &amp;amp;nbsp; 1400 Vehicles &amp;amp;nbsp; 1401 Accumulated Depreciation, Vehicles &amp;amp;nbsp; 1600 Shop Equipment &amp;amp;nbsp; 1601 Accumulated Depreciation, Shop Equipment &amp;amp;nbsp; 1700 Office Equipment &amp;amp;nbsp; 1701 Accumulated Depreciation, Office Equipment Other Assets &amp;amp;nbsp; 1800 Deposits Liability Accounts Current Liabilities &amp;amp;nbsp; 2002 Accounts Payable &amp;amp;nbsp; 2100 Employment Tax Payable &amp;amp;nbsp; 2300 Short Term Loans Payable &amp;amp;nbsp; 2350 Customer Deposits &amp;amp;nbsp; 2385 Current Portion...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Accounting Software</title><link>http://www.smallbusinessnotes.com/business-finances/accounting-software.html</link><description><![CDATA[ Accounting software is one of the more useful purchases you can make as a business owner, given that you choose the right system for your level of computer expertise and accounting knowledge. Here are some pointers to help you find the right one for your business. Your first step is to make a list of everything you need your accounting system to do. If you are a service business, do you need a time reporting and billing system? In a retail businesses you will most likely want to track inventory. Do you also need the inventory system to be...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Collecting Accounts Receivables</title><link>http://www.smallbusinessnotes.com/business-finances/collecting-accounts-receivables.html</link><description><![CDATA[ Keys to collecting debt legally and successfully include preparing a policy and procedure manual and a credit application form. A measured approach to debt collection is better in the long run than immediately going to a collection agency or court. Consumer credit laws affect preliminary debt collection methods, while the Truth-in-Lending Act regulates the amount of interest that can be charged on overdue payments. Understanding the aging of Accounts Receivable and Accounts Payable makes it easier to understand the collection process. The basic message here is simple. The longer an account goes unpaid, the more difficult it becomes to...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Financial Statements</title><link>http://www.smallbusinessnotes.com/business-finances/financial-statements.html</link><description><![CDATA[ To appreciate bookkeeping and accounting, you need to understand why you are doing what you're doing with these numbers, and what knowledge your results will give you. The result you are working toward is good information that which will be available to you from your financial statements. There are a wide variety of financial statements you can generate with the most common ones being a balance sheet and an income statement. These each take a different view on what is essentially the same information. The Income Statement (also called a profit and loss statement) simply shows income and expenses...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Fair Debt Collection Practices Act</title><link>http://www.smallbusinessnotes.com/business-finances/fair-debt-collection-practices-act.html</link><description><![CDATA[ If a person uses credit cards, owes money on a personal loan, or is paying on a home mortgage, they are a debtor. The person they owe money to is a creditor. If a debtor falls behind in repaying their creditors, or an error is made on their accounts, they may be contacted by a debt collector. As a business owner you may be both a debtor and a creditor. As such, it is important that you know about the Fair Debt Collection Practices Act (FDCPA) and its requirements. The FCDCPA requires debt collectors to treat the consumer fairly...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item><item><title>Quickbooks Accounting Software</title><link>http://www.smallbusinessnotes.com/business-finances/quickbooks-accounting-software.html</link><description><![CDATA[ Quickbooks has a wide variety of products - accounting packages for a wide variety of size businesses in addition to applications designed for specific businesses. There are five general accounting software packages: Basic Edition Easy to use tools to manage your business finances with confidence Use This If.... You want to quickly and easily manage basic accounting tasks such as invoicing, paying bills, and tracking expenses You want to organize your business information in one place with information centers and a New Business Checklist You want software that is easy to learn and use with easy setup and familiar...]]></description><pubDate>November  1, 2010  5:15 PM</pubDate></item></rss>