Outsourcing your bookkeeping is typically five times more cost-effective than employing an in-house bookkeeper. With experience using popular accounting software such as Xero, Thesaurus Solutions and Sage, our bookkeeping service will make transaction processing simple, timely, and affordable for your business.
Accrued expenses are those liabilities that have built up over time and are due to be paid. Accounts payable, on the other hand, are current liabilities that will be paid in the near future.
A bank reconciliation statement summarises banking and business activity, reconciling an entity’s bank account with its financial records. Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account
Is a Loan Payment an Expense? A loan payment often consists of an interest payment and a payment to reduce the loan’s principal balance. The interest portion is recorded as an expense, while the principal portion is a reduction of a liability such as Loan Payable or Notes Payable.
Recording the Loan
Accounts payable is the money you owe to vendors, or a liability. Record accounts payable when you purchase something without paying right away.
Accounts receivable is money owed to your business, or an asset. Record accounts receivable in your books when customers purchase something on credit.
One of the first decisions you need to make when setting up your books is deciding how you will record transactions.
You can record transactions by hand, hire an accountant, or use accounting software.
Recording transactions by hand is the most inexpensive and time-consuming method. You open up your business to making common accounting errors, such as miscalculating or failing to balance accounts.
Hiring an accountant is the most expensive but least time-consuming method. When you hire an accountant, you don’t need to manage your books. You may hire an in-house accountant or outsource to an accounting company.
Lastly, you can opt for an accounting software provider to manage your books. Using software lets you track incoming and outgoing money and organize your books. With software, you can automate your record keeping responsibilities, then hand over your books to an accountant for the more complicated accounting requirements, such as tax preparation.
The gross pay is their total salary before any taxes and other withholdings are deducted from their paycheque. The net pay is the income that an employee would receive after all possible deductions have been made. This represents the actual total amount of money they can use, or their take-home pay.
Separating your personal and business funds is a wise decision, even if you aren’t required to do so.
Mixing personal and business funds can cause you to file taxes inaccurately, become disorganized, and overspend. You may accidentally use business funds to make personal purchases if you combine funds.
Opening a business bank account is a straightforward process: choose a bank, gather necessary documents, and open the account.
Revenue Online Service (ROS) enables you to view your own, or your client’s, current position with Revenue for various taxes and levies, file tax returns and forms, and make payments for these taxes online in a variety of ways. Individuals registered for PAYE or LPT only should use myAccount.
An expense that represents how much it costs you to produce your offerings. COGS is a crucial factor when determining your business’s profit.
Money that your business owes. You can have both short-term liabilities that are due within one year and long-term liabilities that are not due within one year.