How do you work out retained earnings?

How do you work out retained earnings? What has retained earnings?  Usually calculated at the end of each financial year by doing the profit and loss account and then deducting any dividends paid out. Then the balance carried forward to the following year and showed in the balance sheet. Tips for […]

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What is the difference between bad & doubtful debts?

What is the difference between bad & doubtful debts? If you have bad debts in your business, you have lost them, and the buyer who never paid for your product or service will not pay in the future. Doubtful debts are those you might not collect the payment for your sales, […]

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What is daily work in bookkeeping in a business?

What is daily in bookkeeping in a business? First, we must see whether the business uses a cash or accrual basis to ensure the accounting system is set up. Cash basis The sample spreadsheet for What is daily in bookkeeping in a business? Sundries Materials Travel Cash    Peter Fees T’phone […]

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How to implement credit control in your business?

How to implement credit control in your business? Maintaining a process by which a small business can give credit to customers who can afford to pay the bill at the specified time is advisable. If you are not careful in having a check on that, you and your business can face […]

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What is the difference between assets and inventory?

What is the difference between assets and inventory? Inventory is a part of the business’s current assets, like goods and materials, to generate revenue. Not all companies have inventory businesses like providing services will not have inventory, but the manufacturing will have inventory and central tat. Whereas assets are concerned, all […]

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Accounting for e-commerce business

Accounting for e-commerce business Accounting is a painful necessity for business owners. It is the dull side of the business. However, if you want your business to grow, you cannot avoid it. Packing all your receipts and handing them to a stranger is not good enough. In addition, you do not need […]

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How do I de-register myself from self-employment?

How do I de-register myself from self-employment? What is self-employment? A person is self-employed if they run their business for themselves and take responsibility for its success or failure. Someone can be both employed and self-employed simultaneously, for example, if they work for an employer during the day and run their own business in the evenings. […]

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Why is accounting an essential skill for entrepreneurs

Why is accounting an essential skill for entrepreneurs? An entrepreneur needs accounting knowledge to stay on track with the expenses and the business’s income. Acquiring budgeting, cash flow, and the business plan helps them stick to tight budgeting and manage financial responsibilities.  If an entrepreneur does not have this knowledge will […]

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Beginners Bookkeeping online course.

Beginners Bookkeeping online course. Description I am Vathani Ariyam, the author of the eBook “Beginners Bookkeeping,” created for students and entrepreneurs to help to maintain their books. A proper accounting system is vital for a small business or a corporation. Keep your accounting records to avoid mistakes, and fraud in the […]

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How does depreciation help in your business?

How does depreciation help in your business? What is depreciation? The monetary value of an asset decreases over a period for which that asset is usable in the business. For example, Equipment, machinery, and currency will likely depreciate over time. The primary journal entry for that is  Debit: The depreciation account shows […]

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