Accountant Log
The Journal
Different ledger accounts and their purposes
A common way to set up a ledger is to have different accounts, each with its own balance. Typical accounts are Cash, Accounts Receivable, Inventory, Prepaid Expenses, Accounts Payable, and Equity. These ledger accounts are not the same thing as the income statement categories of Cash, Accounts Receivable, Inventory, and so on. The income statement […]
Pay yourself before anyone else gets the money
So here is the rule: pay yourself before anyone else gets the money. And what does that mean? Well, if you are self-employed, it means putting aside some of what you bring in for taxes and retirement savings, so that you can spend the rest on your living expenses. If you aren’t self-employed but have […]
How to Pick a Good Accountant
An accountant can work as a financial adviser for your firm by handling a substantial percentage of its financial planning and records. Having an accountant is important since they may manage your bookkeeping as well as tax planning and the drafting of financial documents such as tax returns. An accountant can also help you identify […]
Examples of Nominal Accounts
Introduction of Nominal Accounts: Nominal Accounts are those accounts that are related to income or expenses, gain or loss. Nominal Accounts reflect in the Profit loss Account/Income Statement, for example, is rent expenses, Sale account, Discount Received account, Purchase account, etc. The ultimate effect of the nominal account is transferred into the Capital account. One […]
Why you should have an Accountant
If you have a business — even a very small business — or if you have investments, you should have an accountant. It’s not just about taxes. Every year, the accountant will help you figure out your net worth. If you started as a teenager and now you’re middle-aged, just crunching those numbers will give […]
What do you want to be when you grow up?
There is a well-known problem facing parents and children that at first seems quite unlike this one, but upon closer examination is really just a different version of it. It is the problem of what to do with your life. Your child asks you, “What do you want me to be when I grow up?” […]
Why Accounting Careers are in High Demand
The accounting field is a great field to be in. It’s a field that’s not going away anytime soon. There’s a lot of people needing help in this area and if you’re interested in getting into accounting, then you should think about it. Accountants are needed everywhere from small businesses to the biggest Fortune 500 […]
Why use a Periodic Inventory System
The traditional way to track inventory is to count how much you have every time you make a sale (or, if you sell stuff too rarely to count all at once, estimate how much you had at the last count). The counting cost is high–in fact, since it’s done infrequently, it’s an opportunity cost of […]
How to Keep up to date with Accounting Software
If you don’t know how to do this, you should. If you don’t know how to keep up with accounting software, you should also. It’s not essential knowledge; there are plenty of accounting people in the world who’ve never had to learn it. But if you’re going to run a business, and you’re going to […]
Why Taking Control of Your Finances aren’t as Bad as You Think
The first step to financial freedom is the hardest. The first step is taking control of your finances. When you are young, you need less money than when you are old. Young people generally spend all their money, then work until they are middle aged, then stop working and spend the rest of their lives […]
Financial Controllers: Know where you are financially BEFORE you make a purchase decision.
If you are financially responsible, you should know the financial consequences of every purchase. This takes time, so it is good to start young. But it is irresponsible to buy something before you really need it. Financial controllers are people who have to be constantly aware of the money they have, and the money they […]
Minimize learning curve and take time to understand the business
The businesses you work in, and the technologies you use, change so fast that it’s hard to keep up. There will always be some new thing you need to learn. You’ll be able to predict your future career more accurately if you know what kinds of problems your boss is trying to solve. Learning curve: the […]