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Click here to download the spreadsheet Click here for YouTube video explaining how to use the spreadsheet. Check out my new e-course, Accounting for Startup Businesses for 50% Off. Learn to do accounting using open-source software. I designed the spreadsheet for a simple business that does 355 transactions a year or less. If you do more […]
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Description: Article covers issues and tips that business owners should be aware of while doing their accounts in-house. Many business owners are caught between outsourcing their bookkeeping versus preparing their accounts in-house. The conflict arises if the business owner does not have either the necessary skills to do the work himself or does not have […]
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Your online business must have an accounting system.  It can be sophisticated, or it can be very simple, but you need one.  Your accounting system will: keep track of critical tax information provide a scorecard of useful information to help you track your performance prevent errors and fraud. If I’ve not persuaded you so far, […]
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Accountants like to talk about transparency, the principle that financial statements should give a clear and accurate portrait of a company’s performance. Accounting is important because you need a transparent view of your business’s performance.  What are your sales?  Your expenses?  How profitable is your company?  What assets do you own?  How much cash do […]
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I developed a simple Google Drive template that will allow you to keep a set of books for a simple business.  This will work for a simple business that has a few similar transactions a month.  You can access the template here: This is a view-only file in Google Drive. It cannot be edited. […]
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A Balance Sheet lists a company’s assets, liabilities, and owners” equity at a given point in time.  It follows the accounting equation and will help you understand a company’s solvency and liquidity. Assets = Liabilities + Owners’ Equity. The Balance Sheet is sometimes called the Statement of Financial Position.  The name “balance sheet” comes from the fact that a […]
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There’s much ado these days about Zynga.  I love Zynga’s model of selling “virtual” products which just happen to be costless.  It’s equivalent to selling bottled water or canned air. Another interesting aspect of Zynga is the whale phenomenon.   A small population of Zynga’s customers account for the vast majority of its revenues.  In Zynga’s case, […]
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Your business is built on the accounting equation: Assets = Liabilities + Owners’ Equity Assets are what your business owns.  Liabilities are what your business owes.  The difference between these what you – the owner – actually own: owner’s equity. Suppose your business has $100,000 in assets and $30,000 in liabilities.  Then $70,000 of your […]
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There are many old jokes about the businessman who keeps two sets of books – one correct set, and the other for taxes.  The old joke is – in fact – true.  This is how we accountants do it. Congress designed tax rules  to compute your tax bills.  They contain many special rules designed to […]
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