Most bookkeepers do not have the necessary education in accounting to produce reliable financial statements. Additionally, few have little concept of good internal controls, nor do they understand the necessity of it. Yet, many business owners blindly place confidence and trust in them. It is easy to understand why this happens; most people are intimidated […]
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Bookkeepers and Closing
“Closing” is an activity that occurs when an entity wants to produce accurate financial statements. The “Closing Date” is the date of the financial statements, and is usually the last day of the month or the last day of the year. There are many bookkeepers who do not know what closing is, much less how […]
The Truth About Bookkeepers
Bookkeeping and accounting are vital business functions. However, they are overhead costs that provide absolutely no revenue. Therefore, smart entrepreneurs will do everything they can to keep this cost down. This must be done while maintaining the rigor of having timely and accurate financial information. This may sound obvious and may even sound easy. But […]
Nepotism: A Slippery Slope
Nepotism is defined as “the practice among those with power or influence of favoring relatives or friends, esp. by giving them jobs.” It usually starts with good intentions. Sometimes it works well. Paul Orfalea, the founder of Kinko’s, brought in many of his relatives and friends to help grow his business. This worked because they […]
Leasing: Capital vs. Operating
To view blog as a video, click here. Today we’re discussing the distinction between capital leases and operating leases. As mentioned in an earlier blog, most equipment leases are actually financing arrangements in disguise. The accounting profession has long recognized this, and has issued pronouncements that require that certain leases be treated as if they […]
Equipment Leases: Getting Out
To view blog as a video, click here. Today’s topic is the difficulty in getting out of the lease. One of the biggest drawbacks with equipment leases is that that they are not only very difficult to get out of, most are extremely expensive to get out of as well. The reason is that most […]