The process of 3-way matching in accounts payable protects your business against incorrect or fraudulent invoices. It mitigates risks in your company’s spending by making sure you don’t overpay for services or fall for counterfeit invoices. It may sound like no one would fall for invoice fraud—when a scammer pretends to be a business partner […]
Every business should have a chart of accounts. If you’re wondering what exactly that is, we have you covered. We’ll explain everything you need to know and include an example chart of accounts below. Note, if you use Xendoo for your accounting, we can set up and maintain your chart of accounts for you. What […]
If you’re managing a business—and your books—you’ve probably had to learn what is accounts payable vs. accounts receivable. Accounts payable and accounts receivable are two different sides of the same coin. In this case, the coin is your business. One tracks money that is going out. The other tracks money coming in. Both are important […]
When a small business makes sales on credit, there’s a chance of having bad debt expenses. Most businesses use the bad debt expense formula to account for them. Even the customers with the highest credit record can go bankrupt and fail to pay their debts. Tracking and recording these debts gives you an accurate picture […]
Balance sheets and income statements are indispensable financial tools for all business owners. What should businesses know about the balance sheet vs. income statement? The two complement each other in tracking vital financial metrics such as net income, expenses, profitability, and more. However, there are differences between the two documents. Understanding these statements can be […]
If you run a business, you’ve likely wondered–how much does it cost to hire a tax accountant? Do I need accounting services, and will they save me more money than they cost? While doing accounting and business taxes, you may worry about making mistakes or missing opportunities that a pro would spot right away. Furthermore, […]
When running a small business, you’ll want to track revenue and profit. What is revenue vs. profit? Is one metric more important than the other? While revenue and profit measure your business’s financial performance in different ways, the two metrics are closely intertwined. They are often used to gain a better understanding of your overall […]
Small business expense tracking can be a tedious task. But, it’s one that all companies–from “mom and pop” shops to international enterprises–must do. Fortunately, business expense tracking apps make the job easier. If you have a business with many employees, sales, and tax considerations, an app is ideal. For some small businesses, however, paying a […]
Since starting your business, you’ve likely filled multiple roles–from product and customer service to bookkeeping and sales–at some point. However, as your business has grown, you may have felt like you don’t want to spend your time doing some of those tasks. For instance, you’ve probably asked yourself: Should I outsource bookkeeping? Whether or not […]
Many small business owners miss out on tax savings simply because they aren’t aware of what tax deductions are available. As professional accountants, we know all the small business tax deductions that can save you money, and we’re sharing them in this tax deductions checklist. Before we get into the nitty-gritty of what you can […]
