Accounting Principles & Guidelines

There are general rules and concepts that govern the field of accounting which form the groundwork on which more detailed, complicated, and legalistic accounting rules are based. The phrase “generally accepted accounting principles” (GAAP) consists of three sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by […]

Manual vs Computer Accounting

Back in ancient history when I started my accounting career, everything was done manually. There were paper ledgers, paper subsidiary ledgers, and a pegboard payroll system. Every check was hand-written, after adding up the open invoices so we would know the proper check amount. The 10-key became my best friend. Just about every piece of […]

Proper Procedures for Petty Cash

Many businesses keep a small amount of cash in the office for incidental expenses. If you, the owner, is away and there is a small expense that has to be paid, it would be appropriate to do so out of Petty Cash. You don’t want to leave the money laying around unattended, though, not even […]

Jigsaw Chart of Accounts Puzzle

A Chart of Accounts is very much like a jigsaw puzzle; they come in different sizes with different levels of detail. A 50-piece or 100-piece jigsaw puzzle is pretty easy and can be completed quickly. For most adults, however, there is very little challenge or satisfaction. A 1,000-piece jigsaw puzzle is much more difficult and […]