Bookkeeping meaning FiltersThe definition of bookkeeping is keeping a detailed record of the business transactions for a person or business. An example of bookkeeping is documenting monthly bank statements—keeping a systematic record of business transactions. Recording financial transactions and maintaining the financial records support a company’s financial statements. Bookkeeping is only one […]
Why do you need to select an accounting method? What are different accounting methods? You have taken the first steps in setting up your business but are not sure of the method that you should use to handle your accounts. Accounting is a necessary process that takes your business forward and […]
What is the objective of working capital management? What is working capital? Working capital is the difference between a company’s assets and liabilities. It is a financial measure that calculates whether a company has enough liquid assets to pay its bills due within a year. When a company has excess current […]
*How to build business credit? What is business credit? Depending on your economic history, it is the same as building personal financial credit. Getting loans or credit cards or maintaining your supplier’s accounts for your business will show how you handle your finances. Connecting your credit report to your national insurance […]
A sole trader has employment income. What happens if I also have earnings from employment or dividends? If you are employed, your employer would have deducted the tax for your earning. Also, when you have other income from a side hazel, you must register yourself as self-employed and declare that in […]
Finance advise for non-finance entrepreneurs. Keep your business and personal finances separate. To save time and avoid hassles at tax time: Open a US dollar savings or checking account if you’re Canadian. I live in Canada, yet most of my freelance writing and blogging income is in US dollars. So, I […]
How do you account for partnerships? Partnership accounting is the same as accounting for proprietorship apart from having a different capital and drawings account for each partner. The fundamental accounting equation remains the same that is Assets= Liabilities + owners’ equity. Still, there will be a difference in the owner’s equity, […]