Bookkeeping

Categorizing expenses in your business is indispensable to producing relevant financial records. Your expenses is part of the chart of account. The chart of account is the way your financial statements are organized and should capture relevant events for your business, so your expenses should be divided into accounts that can help you make quick decisions. Think of a chart of accounts like folders on your computer. Each folder in your computer holds information about a certain topic. In the same way a chart of account is like the “my document” folder and under the document folder are different folders and files.To categorize expenses, you must identify all processes involved in your business and assign it to an account. There is no hard fast rule on how your chart of accounts should be coded. However, it will be easier for the business if there is consistency in the choice of names.

Expanding into class tracking provides you with a customizable way to track specific expenses, categorize shared expenses across multiple accounts and handle the accounting for one-off and occasional expenses that aren't necessarily associated with a particular account type. QuickBooks offers a user-friendly method for setting up class tracking, allowing you to get up and running quickly. Greater control over expense categorization is the primary benefit of class tracking, which makes sorting expenses easier.

The most important note for everything mentioned above is the need to stay organized. If you are trying to deduct a cost of doing business. Don’t hesitate to contact us to help you, Our team are dedicated to work closely with you categorizing each transaction to generate an accurate reports at the end of each year, where you can rely on whether for tax purposes, financial evaluation, or applying for Business loans. Once again, paying someone for bookkeeping is also a business expense that can be deducted.

The chart of accounts for a small business is a plan. It is an index of all the accounts where the company files away its financial information. The chart of accounts is a listing of all the company's account names and numbers where it records its financial transactions. When you start a new business, you set up your chart of accounts as a first step in establishing your company's accounting system. Our dedicated team understand that business situations fluctuate due to growth or seasonality, therefore we create your chart of accounts then we review your account quarterly for optimal efficiency.

Typical accounts found in the chart of accounts are:

• Assets
• Liabilities
• Stockholders' Equity
• Revenue
• Expenses

A range of services designed to provide timely preparation of company accounts, whether it be at the financial year end or on a monthly basis. Services include but are not limited to general ledger and financial statement preparation, accounting system design and implementation, cash management & forecasting, and depreciation & asset tracking.

Our teams have a variety of skills including technical knowledge and experience, regulatory and standard setting experience, complex transaction and event understanding and process enhancement and project management capabilities.

Generating general purpose financial statements; including the balance sheet, income statement, statement of retained earnings, and statement of cash flows; is the most important step in the accounting course because it represents the purpose of financial accounting. In other words, the concept financial reporting and the process of the accounting course are focused on providing external users with useful information in the form of financial statements. These statements are the end product of the accounting system in any company. Essentially, preparing these statements is what financial accounting is all about.

Financial statements can be simple or complex depending on the size of the company. Some statements need footnote disclosures while other can be presented without any. Details like this generally depend on the purpose of the financial statements.

Our professional team prepared Financial statements by transferring the account balances on the adjusted trial balance to a set of financial statement templates. Once the team prepare the statements, the business owner could use it internally to gauge the performance of his business for the year or he/she can issue them to lenders or investors to help raise funds to expand the store.

Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system. As business events occur throughout the accounting period, journal entries are recorded in the general journal to show how the event changed in the accounting equation. For example, when the company spends cash to purchase supplies, the cash account is decreased or credited and the Supplies Expense account is increased or debited.

Accountants on Air Bookkeepers analyze the transaction and record it in the general journal with a journal entry. The debits and credits from the journal are then posted to the general ledger where an unadjusted trial balance can be prepared. After accountants and management analyze the balances on the unadjusted trial balance, they can then make end of period adjustments like depreciation expense and expense accruals. These adjusted journal entries are posted to the trial balance turning it into an adjusted trial balance.

In addition, reversing journal entries are made to cancel out the accrual entries made in the previous period. After the reversing entries are posted, the accounting cycle starts all over again with the occurrence of a new business transaction.