The balance sheet is typically used to calculate the net worth of the business, and includes liabilities, cash, and equipment. A basic tenet of double-entry bookkeeping is that the total assets (what the company owns) should equal the liabilities plus equity, i.e. the books should balance. Subtracting the liabilities form the assets reveals the net worth of the business.
Understanding the types and hierarchy of the line items in your chart of accounts will make it easier to maintain clean books, and use your accounting software properly. The chart of accounts categories fall under a few basic groups: income and expense, assets, liabilities and equity accounts.
Smart business owners need to be sure their accounting departments are sufficiently familiar with changes in tax law, or they need to seek help from accounting services that are paid to keep up with regulatory changes.
Closing the books means you are ending your official accounting period so you can start the next period with a clean slate. It means that once the books are “closed” there will be no more changes to the financial documents for the closed period. So accuracy is critical. The closed books are the “gospel” of what has happened in the financials for your company.
First Meeting of Marin Business Forum Cited as a Rousing Success by County Business Leaders and Entrepreneurs
The first gathering of the Marin Business Forum, held Thursday, September 22 at the Wood Island office complex, has been enthusiastically received by Marin County business owners and entrepreneurs.
With the acquisition of Compass Accounting’s food service client base, Pacific Crest Group has substantially broadened its accounting services client portfolio in the San Francisco Bay Area’s restaurant sector.
To outsource or not to outsource…that is the question. If you find running payroll, tracking AP and AR, and being responsible for the multitude of routine accounting functions is a drain on your resources rather than being an asset to your business, you might consider hiring an experienced, reputable accounting service
For moderately sized companies in the $2 million to $20 million range, senior management often turn to their CPA for advice about business finances because they don’t have a CFO or financial advisor on staff. What they will get from a CPA is a financial opinion informed by the CPA’s perspective on taxes and tax law, not necessarily the financial opinion that may be best for the situation.
Often, as owners we find that we wear too many hats: constantly going from being the owner to sales, to HR and accounting, to web design, etc. The reason for creating the Marin Business Forum is to learn more about how to run our businesses better – from guest speakers and from each other.
Pacific Crest Group, Filice, and Cypress Partners Jointly Sponsor Marin Business Forum Networking Event for Bay Area Businesses
The networking event will feature a panel discussion, including what business owners should know about outsourcing accounting and HR services, and what they should know about choosing the best benefits provider.
lot of our initial conversations with IT client prospects center on disaster recovery – what is the worst case scenario that could bring your network down? Is it a server crash? Internet failure? Multiple workstations failing at the same time?