How to Reimburse Yourself

How to Reimburse Yourself

If you search the web or asked a few accountants, you will probably get the idea that the easiest way to pay yourself is to reimburse yourself.  I did not mention anything about reimbursement In the How to Pay Yourself article, it is because paying yourself involves giving money to yourself for personal expenses, while […]

Keeping electronic records

Keeping electronic records

On one hand, electronic records save a lot of trees; on the other hand, it gives a lot of people headache on record keeping.   Not surprisingly, not too many people know that simply printing the record of an electronic purchase or e-invoice is not enough. According to CCRA regulation as off 2007, the electronic […]

Filing System – By Category

Filing System – By Category

This method is the most popular request by business owners. This is because business categories make more sense to business owners and executives. For example, it is generally understood that Automobile expenses will include lease costs, parking, fuel, auto insurance, car licensing fee, and maintenance. It is general not so clear when you refer to […]

File System – By date

File System – By date

Most professional bookkeepers who do journal entries in a daily basis like to use this method. As the date close, sales receipts, deposit slips and all the other paper received for the date will be recorded into the correct journals, and each paper will be marked with a reference number in the order of entry. […]

How to Keep Records – Get Organized

How to Keep Records – Get Organized

The first and foremost important task in bookkeeping is keep paper trail. You need to be able to retrieve a piece of receipt, customer order, and easily find out when and where you purchased what, in a fast and efficient way. So organizing your file system is important, but often post challenges to new bookkeepers […]

Debit and Credit

Debit and Credit

Most people understand debit and credit in their bank checking account.  Simply credit means you have more money in your bank account, and debit is less.   In accounting, this credit and debit is a totally different animal.  If you want to learn bookkeeping, you need to forget about traditional concept of credit and debit.   […]

Chart of Accounts

Chart of Accounts

Wow, first buzz word!  After reading all these articles in the bookkeeping beginner session, you should be able to throw some buzz words when you meet with your investors, business partners and accountants.   A simple definition of Chart of account: It is a list of categories you decide to keep track of, and each […]

What is bookkeeping and Why?

What is bookkeeping and Why?

If you are asking this question, I am guessing you are either considering going into the accounting or related career, or you are a business owner or in management.  Most people, especially new business owners, have a misconception that bookkeeping is to sort and organize your receipts, so at year end you can just add […]

Mix personal and company spending

Mix personal and company spending

This is one of the most popular questions from small business owners.  Most of them won’t be able to find the answer other than “you are not suppose to do that, try separate them”.  Honestly, how many times do you need to make a purchase for the business, when all you have is a personal […]