Forget the rhetoric. Forget the politics. There is a problem that is getting worse, faster than we thought . Social Security and Medicare are broke. In 2011, it was estimated that Medicare could last until 2024, retirement until 2038 and disability until 2018. Now, a year later, the disability fund runs out in 2016…… You [...]
Make no mistake – real estate accounting is tougher then bookkeeping for a regular business. That’s because you have to know something about real estate terms, understand basis, have an understanding of real estate tax and, if you’re doing some creative real estate buy, hold or sell techniques, know how to report that on your [...]
Pop quiz. Is a debit better than a credit? Or is a credit better? That’s a trick question because the answer is “it depends.” Accountants rely on something called the Accounting Equation. Here it is, in its simplest form: Assets = Liabilities & Equity Equity is comprised of stock, partner’s capital, stock or proprietorship capital, [...]
I’ve had a frustrating week with a couple of clients who are trying to grow a business with no idea what their numbers are. It’s like seeing someone steering right toward a brick wall foot on the gas and no matter how loud you scream at them, they don’t change course or put on the [...]
By this time, you should have your May financial statements. If you don’t, you’ve got a hole in your system. Bookkeeping can be a vital key for being a business owner. Your financial statements should never be more than 30 days late and they should give you, at a minimum, the following information: Where does [...]
Most small businesses are embezzled from. Do you know who is the most likely to do it? Your bookkeeper. Here are some warning signs: Financial records are late, The bookkeeper is overly secretive and will not share back-up information, The financial statements don’t make sense, The bookkeeper won’t go on vacation, or It just doesn’t [...]
There are two different ways to keep your books. Today I’m not talking about cash or accrual. I’m talking about ‘book’ and ‘tax’ accounting. Most of the small business owners and real estate investors I work with report their taxable income on the cash or hybrid method. Hybrid method means that everything is cash basis, [...]
