Accounting, Banking & Loan Site

There are many versions of accounting software available to small business owners, but accounting is only one aspect of recordkeeping. Word processors, databases, spreadsheets, and all sorts of graphics can aid you in managing the financial and clerical aspects of your business. Read the rest of this entry »

Current assets are the key assets that your business uses up during a 12-month period and will likely not be there the next year. The accounts that reflect current & long-term assets are:

Cash in Checking: Any company’s primary account is the checking account used for operating activities. This is the account used to deposit revenues and pay expenses. Some companies have more than one operating account in this category; for example, a company with many divisions may have an operating account for each division. Read the rest of this entry »

As a business owner, you should deposit all business receipts in a separate bank account. If possible, you should also make all disbursements by check. In regard to all business entities, with the exception of corporations, a disbursement from the business account is not necessary to qualify the expenditure as a business expense. A check written on a personal account for business purposes will qualify if that expense is otherwise allowable. It is important to document both business income and business expenses. Read the rest of this entry »

Businesses operate to achieve various goals. To meet these goals a business must achieve two primary objectives: To earn a satisfactory profit and to remain solvent (be able to pay its debts). If a business fails to meet either of these primary objectives, it will not be able to survive in the long run. Read the rest of this entry »