Category: Accounting & Bookkeeping
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What Is the Net Cash Flow Formula? (+ an Example of How It Works)
How do you know if your small business is financially healthy? One clear sign is it’s making more money than it’s spending. This accounting metric is most commonly referred to as cash flow. According to a recent Facebook study, 33% of small businesses cited cash flow constraints as one of the greatest near-term challenges they…
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Bookkeeping for Freelancers: A 2022 Guide
The term “freelancer” was originally used to describe a medieval mercenary whose lance wasn’t sworn to the service of one lord. And while they’re no longer hired assassins, freelancers are still “killing it.” According to Payoneer, a freelancer’s average hourly wage in 2022 was about $28, almost double the national average. While freelancing may improve…
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11 Accounting Formulas Small Business Owners Need to Know
If you’re a small business owner who likes to do their own bookkeeping, you’re not alone. According to a recent report by Clutch, a majority of small businesses (62%) prefer to do their accounting in-house. Luckily, you don’t have to be an accountant to assess your business’ financials. Use these tried-and-true accounting formulas to quickly…
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How to File Independent Contractor Taxes 2022
Disclaimer: This blog post is intended to provide generalized information designed to educate a broad segment of the public. It’s not personalized tax, investment, legal, or other business or professional advice. If you have questions, speak with a qualified professional. Every month, employers all over the US withhold taxes from their employees’ paychecks. But for…
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Free Independent Contractor Expense Spreadsheet
Have you ever struggled to manage your financials as an independent contractor? If the answer is yes, you’re not alone. According to Freelancer Map’s 2021 study, 25% of freelancers consider accounting one of the greatest challenges of self-employment. 21% also said that trying to do their own accounting was one of the biggest beginner mistakes…
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Bookkeeping Tips for Small Business Owners
If you’re like many small business owners, you may tend to keep many of the financial details of your business in your head or through handwritten notes. This could lead to a myriad of problems down the road, not the least of which is an IRS Tax audit. This blog provides some key bookkeeping tips…
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Why Business Owners are Moving Away from Outsourced Bookkeeping
By 2025, finance and accounting firms will lose 60% of their outsourcing contracts. That’s more than half of their usual patronage gone because buyers want more competitive prices and automated alternatives. And thanks to limited funds and less staff, small businesses are looking for even more flexibility. Outsourced bookkeeping is on the decline because it…
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Does Your Small Business Need Automated Bookkeeping?
If you’re sitting there thinking, But my bookkeeping is automated, I’m using a computer, it’s time to rethink what you know about automated bookkeeping. Using Excel spreadsheets and desktop accounting software might be more efficient than keeping a written ledger like an 18th-century shoemaker, but you’re still inputting and verifying your financial transactions manually. Bookkeeping…
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Is Cloud Accounting Safe for Small Businesses?
2021 is on track to be a record-breaking year for data breaches, with 1,291 breaches reported as of Q3 2021—and that’s after almost two years of reports citing an ongoing spike in cyberattacks since remote work mandates began. Even though cybercrime has been all over the news lately, small business owners often have so many…
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How to Keep Track of Business Expenses and Why It’s Important
As a business owner, do you handle your own finances without the help of a bookkeeper or an accountant? If you do, you’ve likely had the experience of bookkeeping tasks—like recording business expenses—falling to the wayside for a multitude of reasons (e.g. you’ve been really busy or the idea of bookkeeping summons a deep dread,…