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As an entrepreneur, it is a must for you to keep excellent bookkeeping records. This is because a lot of researches have proved that business with inadequate accounting documents and account books are more likely to fail. Such company also possess lesser opportunities for survival when they are compared to companies that maintain excellent accounting … Read morePractices That You Should Avoid in Bookkeeping

Some assets will last for years, for example, equipment, machines, buildings, furnishings, computers, vehicles, and parking lots. However, they are not going to last forever. When an accounting period passes by, a part of the value of these assets is depleted. On the income statement, you will record the depleted part as Depreciation Cost. Depreciation … Read moreWhat is Depreciation?

If you do not have a thorough understanding of the accounts of an organisation, you have to learn some crucial elements before you started running your business or sit for an accounting test. This is a typical topic in financial accounting (Also see Distinguishing Financial Accounting and Management Accounting). We often hear the terms payables … Read moreHow Does Accounts Payable and Accounts Receivable Differ from Each Other?

Bad Debts When someone owes you money, yet he or she is incapable of paying it, it is bad debt. Once you realise that the debts are bad, you have to remove it from the sales ledger and move them to a Bad Debts account by journal entry. Provision for Doubtful Debts Debt might not … Read moreThe Correct Way of Recording the Provision for Bad Debts

A lot of people wish to be self-employed, and without a doubt, it has its bunch of advantages. Being self-employed means that you are responsible for your business and you can work at your own pace, and there are numerous other advantages you may get (Also see How Can Business Owners Manage Their Time Wisely). … Read moreAre You Filling Your Self-Employed Income on Your Own?

Although managing a small firm may not be as complicated as operating a large firm, proper financial management is still crucial. Below are some excellent financial practices that you should not neglect if you wish to manage your money wisely. Bear in mind that Time Is Money New entrepreneurs commonly start by running the business … Read moreMoney Management Tips for Startups