Magazine

By taking out an appropriate and consistent owner’s draw, you will make it easier on your accountant to manage your financials and prepare for your taxes. Being consistent helps make it easier to budget and calculate how much money your business has. Here is a recipe for taking out an owner’s draw that will keep your accountant happy. Bon Appetit!

You overheard an accountant say she’s a “financial controller.” She said that means she manages all finance and accounting operations of a business, from coordinating and directing the preparation of the budget to forecasting to reporting variances to prepping monthly financial statements. Here’s what accountants really mean by “financial controller.”

Some client meetings are simple, and some are analytical deep dives into the operations of a business. During these meetings, key decision makers and their accountants review trends, productivity, and results of their business’ operations. One accountant knew her deep dive with a client was going to take so long that she pre-ordered lunch for everyone.

Instead of a day packed to the brim with number problem solving, analytical deep dives, and model building, the accountants have an easy-going day. This Friday is spent catching up with work and each other, networking with partners, and taking a breather from the hustle and bustle of a busy consulting firm. Here is one accountant’s Fun Team Friday.

By counting your inventory, you can avoid mistakes when you order products for your business. Having an organized process keeps you from ordering items you don’t need or forgetting products you definitely need. Here’s a recipe for a perfect process for counting your inventory, including easy to follow directions, tips, and ingredients. Bon Appetit!

Your accountant mentions “accounts receivable aging.” She says it means “the method of sorting the customer receivables by the due date to estimate the bad debts expense to the business. Accounts receivables arise when the business provides goods and services on a credit to the clients.” Here’s what she really means by “accounts receivable.”

Good communication is imperative to getting things done. When communication is interrupted by a change, lack of understanding, or a faulty system, it can become harder and harder to find the information you’re looking for. Here is how one accountant ended a a seemingly endless game of Telephone by creating a whole new process for paying bills. 

Today is payroll day. It is the day accountants clean up employee time cards, get in touch with managers to verify that hours are correct, check paid time off, and submit payroll. While payroll day is not usually very complicated, it can be nerve wracking knowing you’re the one in charge of making sure people receive the correct paychecks on time.

By paying your bills on time, you can make sure you don’t put strain on your relationships with vendors and contractors. The people you work with hold you to a higher standard when you promise the return of payment. If you don’t meet that standard, they might think you are an unreliable partner. Here’s a recipe for paying bills weekly. Bon Appetit!

Your accountant is scrubbing the general ledger this month. She says the general ledger is “the record keeping system of all of a company’s financial data, from debit and credit card spending to expansion, providing a true record of every financial transaction a company makes in its entire lifetime.” Here’s what she really means by a “general ledger.”