Understanding your numbers shouldn’t be confusing. Here are short videos explaining some of the most common bookkeeping and financial topics business owners ask about.
have a question about your bookkeeping or business finances? feel free to reach out.
why your bank app is not bookkeeping
Many business owners rely on their bank balance to understand their finances, but that doesn’t tell the full story. This video explains why proper bookkeeping matters.
What a chart of accounts is
Your Chart of Accounts is the structure behind your financial reports. In this video, I explain why this setup impacts everything.
Bookkeeping vs Accounting
These terms are often used interchangeably, but they actually serve different roles in a business. This video breaks down the difference.
Stop Mixing your money
Mixing personal and business transactions creates confusion in your financial reports. Here is why separating them matters:
Cash vs accrual
Two different accounting methods can show very different pictures of your business finances. Here is the difference:
What is job costing?
Job costing tracks income and expenses by project so businesses can see which jobs are actually profitable.
3 reports you should know
WHY YOUR CPA ASKS QUESTIONS
WHY CLEANUP COSTS MORE
When books are behind, someone has to reconstruct the past, which takes more time and money to complete.
markup vs margin
These two terms often confuse business owners, and they are both important to understand.
This is one of the most commonly used reports, and business owners should know what it is used for.
the balance sheet
This is one of the most important reports for business owners. It is very important for business owners who want to know their true financial position.
Revenue vs profit
These two terms, although related, do not mean the same thing. Looking at one, but not the other, gives business owners only half the story about the financial health of their business.
estimate vs invoice
Understanding these three financial reports can help business owners see what’s really happening in their business.
If your CPA is asking questions, this usually means there are things in your books that need to be clarified before they can complete their work.
profit and loss report
Both of these are used during business transaction, but not in the same situations.
expense vs cogs
This video explains these two categories, which are used to track different types of business expenses.