Financial management can be a struggle for small businesses. Often, business owners open their own companies based on a different passion, whether that’s handmade couture or wanting to cook for customers. While their product or service skills are top-notch, owners may not necessarily understand how to keep good financial records. Recording your daily sales and …
Best Practices for Recording Daily Sales and Expenses Read More »
Sustainability reporting is an expanding area of bookkeeping and accounting practices. As climate change and social injustice wreak havoc on the world, more businesses are looking for ways to become sustainable. Sustainability reporting helps businesses understand how their company’s non-financial aspects—from greenhouse gas emissions to using recycled paper—affect the environment and community around them. Here’s …
Cash was once king, but today customers expect to be able to pay with credit cards. They’re convenient, easy, and fast—but they also come with merchant fees. Your small business is responsible for paying credit card transaction fees each time you accept a card. They can add up quickly, and eat into your profits. Here’s …
Inflation has been rising rapidly this year, and small businesses have been hit hard. Most small businesses have tighter profit margins and lower cash reserves. Since money just doesn’t go as far as it once did, it’s tough to keep up with the burden of inflation. Inventory, supplies, fuel and materials are more expensive than …
1099s are issued to taxpayers who earned non-employment income over the previous year. There are several different kinds of 1099s, depending on the type of income. Dividends, stock income and independent contractor service payments are all reported differently. If your business uses the services of independent contractors or vendors, you’ll need to issue a 1099 …
Charts of accounts (COAs) are a financial organizational tool. Companies should be able to provide a clear snapshot of their financial health for interested parties, such as investors, shareholders and more. COA contents can vary, depending on the type of business you run. Typically, they contain a list of assets, liabilities, revenue, expenses and equity, …
What Is a Chart of Accounts, and Why Do You Need One? Read More »
When you run a small business, understanding what the cost of goods sold (COGS) is and why it’s important will help you keep track of your company’s profitability. Typically, COGS includes the cost of production, inventory, labor and/or raw materials. It does not include indirect costs, like marketing, advertising and distribution. Knowing the exact COGS …
Small business owners may not necessarily have a finance or business background. When it comes time to create a cash flow forecast, you might find yourself wondering what that is and how to get started. While a bookkeeping team like MCG Solutions can always help you prepare a cash flow forecast, it’s worth understanding how …
Have you ever given a customer a discount on an item, after they’ve received the item but still owe payment? To reconcile your financial records, you’ll need to create a credit memo. If credit memos confuse you—or worse, you don’t know what they are—this guide will help you understand how they work and why you …
Small businesses and startups are often founded by people with unique talents and vision—and bookkeeping and payroll duties may not be on that list. Many founders and sole proprietors take on these duties to keep costs low in the beginning. As the business grows, bookkeeping and payroll take more time. This can take time away …
