Cynthia Richards Consulting

05/10/2019

Debit & Credit
When most people hear the term debits and credits, they think of debit cards and credit cards. Debit cards refer to straight up cash payments while credit cards are a form of borrowing. In addition, most nonaccountants think of debits as subtractions from their bank accounts and credits as additions to their accounts. In accounting, however, debits and credits refer to completely different things. Debits and Credits are simply accounting jargons that trace their roots to hundreds years ago and are still used in today’s double-entry accounting system. A double-entry accounting system means that every transaction that a company makes is recorded in at least two accounts, where one account will get a “debit” entry while another account will get a “credit” entry. These entries are recorded as journal entries in the company’s books. Debits and credits can mean either increasing or decreasing for different accounts.

25/09/2019

Many small companies don’t actually hire full-time accountants to work for them because the costs are usually higher. Instead, small companies generally hire a bookkeeper or outsource their bookkeeping duties to a professional bookkeeping firm. An important thing to note here
is that many people who have ambitions on starting a new business sometimes overlook the importance of trivial stuff such as records of every penny spent. Running a business, however, is a marathon and not a sprint and to help achieve longevity, bookkeeping is essential! Proper bookkeeping and a proper financial trail give companies a reliable measure of how well or how poor they are doing. It also provides guidance on general strategic decisions and a benchmark for profit goals. In short, bookkeeping, once a business is up and running, is
your best friend so spending the extra time and money on maintaining proper records is critical.

31/07/2019