accounting

Getting audited by the IRS without receipts can lead to disallowed deductions, penalties, and even increased tax bills. This article explains what to expect, how to handle the audit process, and what you can do to protect yourself—even if your documentation is lacking.

Accurate tracking of daily expenses and income is essential for managing cash flow and making informed business decisions. Learn how to set up an effective system using tools like spreadsheets or accounting software, and get tips on organizing receipts, categorizing expenses, and automating payment tracking.

While QuickBooks simplifies many accounting tasks, having an accountant can still be crucial, especially as your business grows or faces complex financial challenges. Accountants provide expertise in tax compliance, financial analysis, audit support, and strategic planning, helping you optimize QuickBooks and make informed business decisions.

Understanding how to pay yourself from your LLC depends on your business structure. Whether it’s an owner’s draw, owner’s distribution, or salary (for S corp elections), each method has distinct tax implications. Learn what these terms mean and how to manage your payments properly.

Learning basic accounting duration depends on prior knowledge, complexity of concepts, study efforts, and learning style. Here’s a general overview of what to expect… 1. Basic Accounting Principles – If you’re starting with no prior knowledge of accounting, it may take several weeks to grasp the fundamental accounting principles and concepts. This includes understanding concepts such as the accounting equation, debits and credits, types of accounts (assets, liabilities, equ

Golden rules in accounting are fundamental principles that guide the recording of financial transactions and the preparation of financial statements. These rules are the cornerstone of double-entry bookkeeping, a system where every transaction affects at least two accounts: one account is debited (increased) while another account is credited (decreased) by an equal amount. The three golden rules in accounting are… 1. Debit what comes in, credit what goes out – This rule appl

Wondering how to pay yourself as a small business owner? Learn the most common methods—including owner’s draw, salary, dividends, and profit distributions—and discover which one fits your business structure and financial goals best.

Maintaining a clear separation between personal and business accounts is important for several reasons, as commingling funds can pose various risks and complications. Here are some of the risks associated with mixing personal and business accounts: Legal and Tax Implications: Tax Compliance: Mixing personal and business transactions can make it challenging to accurately report income, deductions, and business expenses for tax purposes. This can lead to tax compliance issues

The typical work hours for accountants can vary depending on factors such as the specific industry, the size of the firm, the time of year, and the workload. Here are the factors that can affect the typical work hours for accountants… 1. Regular Work Hours – In many cases, accountants work regular full-time hours similar to other professionals, typically around 40 hours per week. This may involve a standard 9-to-5 schedule, Monday through Friday. 2. Busy Seasons – Certain t

Accounting can be stressful, but it depends on job responsibilities, work environment, workload, deadlines, and personal preferences. Here are some factors that can contribute to the stress levels in accounting… 1. Busy Seasons – Certain times of the year, such as tax season for public accountants or month-end close for corporate accountants, can be particularly busy and demanding. During these periods, accountants may experience high workloads, tight deadlines, and long hou

Goodwill is an intangible asset on a company’s balance sheet as it lacks physical substance but has value due to certain rights, privileges, or advantages. In accounting, goodwill typically arises when a company acquires another business for a price higher than the fair market value of the acquired company’s identifiable tangible and intangible assets minus liabilities assumed. The excess purchase price is attributed to goodwill. Goodwill represents the reputation, customer r

Math is important for accounting, but being bad at math doesn’t mean you can’t pursue a career in accounting. 1. Level of Math Required – The level of math required for accounting is generally not overly complex. While some accounting tasks involve arithmetic calculations, such as addition, subtraction, multiplication, and division, many accounting functions rely more on analytical skills, critical thinking, and attention to detail rather than advanced mathematical concepts.

Some of the strongest skills typically include… Attention to Detail – Accountants must be meticulous and accurate in their work to ensure that financial records are complete, precise, and compliant with regulations. Analytical Thinking – Accountants need strong analytical skills to interpret financial data, identify trends, and draw meaningful insights that support decision-making. Problem-Solving Ability – Accountants often encounter complex financial issues or discrepanc

In accounting, there are three main types of accounts based on their nature and purpose in recording financial transactions. These three types of accounts are… 1. Asset Accounts – Asset accounts represent resources owned or controlled by a business that have economic value and are expected to provide future benefits. Assets are typically classified into two main categories… a. Current Assets – These are assets that are expected to be converted into cash or used up within on

Learning to account on your own is entirely feasible with dedication, discipline, and access to resources. Here’s a step-by-step guide to help you get started… 1. Understand the Basics – Begin by familiarizing yourself with fundamental accounting concepts and principles. These include the accounting equation, double-entry bookkeeping, types of accounts (assets, liabilities, equity, revenue, and expenses), and the structure of financial statements (balance sheet, income state

The “Three Golden Rules of Accounting” are based on the accounting equation that states assets must equal liabilities plus equity. The three rules are… 1. The Golden Rule of Debit and Credit – For every transaction, there must be at least two accounts involved, and the total debits must equal the total credits. In other words… Debit (Dr.) – Entries on the left side of the accounting equation represent increases in assets and expenses, as well as decreases in liabilities and

AP is a part of accounting, and AP professionals are often called AP Clerks or Specialists, not accountants. Yet, in larger organizations, accountants or accounting managers may oversee the accounts payable process as part of their broader responsibilities. Accounts Payable involves managing the company’s outstanding invoices and payments to suppliers, vendors, and other creditors. The primary responsibilities of Accounts Payable professionals include… 1. Receiving and proces

Learning to account for free is possible through various online resources, courses, tutorials, and educational platforms. Here are some ways you can learn accounting for free… 1. Online Courses and Tutorials – Many websites offer free accounting courses, tutorials, and educational resources that cover basic accounting principles, concepts, and practices. Some popular platforms include… Khan Academy – Offers a variety of free accounting courses and tutorials covering topics

In accounting, assets refer to economic resources that are owned or controlled by a business entity and are expected to provide future benefits. Assets are one of the fundamental elements of the balance sheet, one of the three primary financial statements in accounting. Assets are typically classified into two main categories: current assets and non-current assets. 1. Current Assets – Current assets are resources that are expected to be converted into cash or used up within

The difficulty level of accounting classes can vary depending on factors such as individual strengths and interests, teaching methods, course content, and prerequisites. Regardless, some accounting courses are commonly considered more challenging due to their complexity and depth of material. Here are a few accounting classes that students often find challenging… 1. Advanced Financial Accounting – This course typically covers complex topics such as consolidation of financial