Continue reading One Metric You Need to Be Looking at If You’re Having Cash Flow Issues

One Metric You Need to Be Looking at If You’re Having Cash Flow Issues

It’s possible to have a business make a great deal of sales and still have cash flow issues. How? Accounts Receivables. We have a longer post on Accounts Receivables (or AR), but in simplest terms AR is money that is owned to a business for products or services that it has delivered but the customer…

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Continue reading What is Accounts Receivable (AR) and Why it’s Important to Your Business

What is Accounts Receivable (AR) and Why it’s Important to Your Business

For many business owners, you can get away with know very little accounting and still run a successful business. If you would to learn the basics of account we have a tutorial series here. However, one thing is for certain: you have most likely had dealing with accounts receivables. Accounts receivables or “AR” represents money…

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Continue reading Accounting for Beginners – Overview

Accounting for Beginners – Overview

Though not done on purpose, accounting has gone overlooked in many small businesses and freelance work flows. There are many reasons as to why it has gone overlooked, but the main reason is a lack of understanding. When we think about accounting, we see a role surrounded in seemingly foreign jargon and arbitrary math. However,…

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Continue reading Accounting for Beginners 1.6 – Double Entry Bookkeeping

Accounting for Beginners 1.6 – Double Entry Bookkeeping

Unlike single entry bookkeeping (read more here), the key to double entry bookkeeping is that every transaction is recorded in at least two accounts. This maintains the balance that we’re so fond of. The Accounts When you are recording a transaction, it belongs to an account. Just to refresh your memory, the different accounts (learn…

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Continue reading Accounting for Beginners 1.5 – Single Entry Bookkeeping

Accounting for Beginners 1.5 – Single Entry Bookkeeping

Now that we’ve expanded the accounting equation (read more here) we can start to really apply it to our businesses. Recording transactions within the context of accounting is known as bookkeeping. If you are a small-business or one-person team, chances are you are doing this bookkeeping yourself, and an even greater chance that you are…

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Continue reading Accounting for Beginners 1.4 – Expanding the Accounting Equation

Accounting for Beginners 1.4 – Expanding the Accounting Equation

Previously we’ve learnt about assets and liabilities (read more here), then we threw capital into the mix. And finally we covered the basic accounting equation (learn more). Just to remind you, the basic accounting equation was: Assets = Liabilities + Capital With the two sides of the equation always in balance. However, you may notice…

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Continue reading Accounting for Beginners 1.3 – Accounting Equation

Accounting for Beginners 1.3 – Accounting Equation

An equation? You probably figured there’d be math at some point, but surely not by the third post. Not to worry the accounting equation is simply adding two numbers to get a third. Assets = Liabilities + Capital   Capital We previously learnt about assets and liabilities (read more about them here). The only new…

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Continue reading Accounting for Beginners 1.2 – Assets and Liabilities

Accounting for Beginners 1.2 – Assets and Liabilities

In the last post we covered accrual accounting and when we can recognize revenue. Today we’ll look at two of the basic building blocks of accounting: assets and liabilities. The two terms are fairly straightforward even if you don’t have any experience, but with relation to accounting there can often be more than meets the…

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Continue reading Accounting for Beginners 1.1 – Accrual Basis

Accounting for Beginners 1.1 – Accrual Basis

This is our first post in what will an ongoing series titled “Accounting for Beginners,” with the idea being to explain the basic building blocks of accounting in a way anyone can understand. We are hoping to accomplish this by having non-accountants write these posts, this way the author is on the same page as…

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Continue reading 3 Simple Ways to Select Clients That Are Worth Your Time

3 Simple Ways to Select Clients That Are Worth Your Time

Yes I hear what you’re saying loud and clear, “Who can afford to turn down clients!?” If you are just getting started out or don’t have a lot of contacts, it makes sense to take the jobs that come your way (Alexis Grant has a great blog post about making the transition from taking every…

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