Categoría: Bookkeeping

This transaction increases your capital account and zeros out the income summary account. Revenue is one of the four accounts that needs to be closed to the income summary account. This is the adjusted trial balance that will be used to make your closing entries. While these accounts remain on the books, their balance is...

Then, current and fixed assets are subtotaled and finally totaled together. This transaction affects only the assets of the equation; therefore there is no corresponding effect in liabilities or shareholder’s equity on the right side of the equation. For every transaction, both sides of this what is useful life in accounting equation must have an...

Tracking and documenting the above could be done manually (on spreadsheets and physical folders) or through automated accounting software. Even if you decide to hire an accountant to do the job, it’s still valuable to know the principles upon which accounting works. We believe that startups need both a bookkeeper and an accountant, although it...

Some startups have only one employee, the founder, which makes payroll a non-issue in the early days. However, it is essential to maintain detailed payroll records for any startup with at least a few employees. Every single business should maintain accurate, up-to-date financial records. Accounting is the process of accurately recording and interpreting a business’...