Is there a donation app on your church’s website? Should you use it? Have you ever seen someone arrive at church and pull out their checkbook? Maybe it was you!. I’ve done it. I’m ready for church; on my way out the door; then I remember that I forgot. My own church, Trinity Episcopal Church, …
What are leasehold improvements and how do we record them? We’ve talked about capital improvements. Click here to read about improvements made to a property that you own. But what if you’re renting your facility? Or if you’re the landlord that made improvements to a property for a tenant? You should capitalize improvements to the …
Estimates nice and easy? Is that possible? I recently spoke with AJ Eames, the owner of Custom Colonial Painting (Click here to visit website). Like most successful business owners, he’s discovered ways to make his efforts more productive. He’s using the Joist app to create estimates quickly and email them to the customer right through …
How do you record the sale of an asset in your bookkeeping software? Did you sell your truck for a profit? Dispose of equipment at a loss? Do you know how to record that in your bookkeeping software? The asset and its depreciation should be up to date before entering the journal entry to record …
Your profit and loss should be set up for you. The list should be understandable and organized so that you can understand it easily. Your categories should be understandable to you. No secret codes here. And no doubling up, either. If you accidently list the same category (account) twice, then hide one of them. The …
A capital improvement is a renovation or addition to property that is recorded as a fixed asset itself. There are certain criteria that the improvements must meet to be categorized as an asset. Let’s look at them here: The first consideration is your business’s policy for capitalization (categorizing a cost as an asset instead of …
Goodwill is that intangible asset you pay for when buying a used business. It’s that thing you pay for that isn’t a tangible asset*. The good reputation of the business, brand recognition, licenses, or intellectual property are all examples of goodwill. (*click here to learn about assets) What is the dollar value of goodwill? It’s …
Did you loan your employee money? You can deduct the payments from their paycheck. But be careful to record it all properly. Set up the employee loan first. The loan account will be a current asset. Let’s just call it employee loan. To record the initial payment of funds to the employee you would debit …
Revenue is the total income from business operations. So, If I sell a book for $100, that’s my revenue: $100. But does that really answer the question, “How much profit did I make?” Probably not. When we ask ourselves how much we made, we’re usually looking for the profit. That is, the amount of money …
COGS (cost of goods sold), cost of sales, direct cost, or job cost all mean the same thing. Although it is usually self-explanatory, sometimes COGS is mislabeled as expense. So, let’s take a closer look. We say anything the customer takes with them or that we leave with the customer is COGS. Inventory is the …