It depends. Everything depends, I know, but in a situation like this, the answer depends on why the sale was credited: Continue reading
Category Archives: 1 Basic Accounting
I provide services. What’s part of my “cost of sales”?
With selling goods, your “cost of sales” is the expense you made to initially buy the goods. First off they’re in inventory on the balance sheet and as you sell them, they’re taken off from the inventory and shown on the income statement as an expense made to make a sale. Now with services, there are usually no goods. Continue reading
Help! What shall I do with my excess money?
You sure it’s excess? By definition “excess” means there’s something more than needed and when you think about it, think hard when it comes to running a business, surely you can think of something that requires money. Continue reading
How much money is enough?
It’s always a good question. Some might say that there’s never enough money and others may say that enough is when it’s enough. Both are similarly vague and not really accurate. Continue reading
Inherent risks when it comes to dealing with cash
So you’ve decided to deal with cash payments (well, decided or forced, doesn’t really matter), but have you considered all the risks there are? Have you mitigated them to an acceptable level for you? Continue reading
Should you use cash in your business?
The decision whether or not to use cash payments in your business comes mostly down to need. Do you need to deal in cash? Taking into consideration all the risks there are, it’s always down to “need” and not “choice”. Continue reading
Debit and credit – the very basic when it comes to accounting entries themselves
When we’re talking about “making an accounting entry” what we mean is a two-sided entry you’re making into your accounts with one side being debit and the other credit. Obviously there can be more than one debit or credit, but each entry must always have its debit and credit side. Continue reading