These Bookkeeping tips were published by AIPB.org in:
Who Is Today’s “Professional Bookkeeper”?
Part accountant, part tax practitioner, part financial analyst. Today’s professional bookkeeper is often expected to know that…
- when the company acquires equipment under an operating lease, the monthly rental is recorded an expense—but if acquired under a capital lease, the value of the equipment is recorded as an asset and depreciated;
- a holiday gift to an employee of a turkey or ham is tax-free, but a gift certificate for a turkey or ham must be included in wages subject to FITW, FICA and all other employment taxes;
- it is inadvisable when processing an invoice to write the check early, then hold it for payment because when vendors see checks with old dates, it suggests that the firm is having cash flow problems;
- paid vacation or sick days need not be included in hours worked to calculate the amount of overtime pay due;
- when booking a monthly credit card bill that contains personal items purchased by the employee, the personal amounts are debited to Due from Employee—Lee Green, and credited to A/P—Credit Card Co.; then, when the employee repays the amount, debited to Cash and credited to Due from Employee—Lee Green;
…and this is the easy stuff.
The list of rules, do’s and don’ts that today’s bookkeeper must know is endless.
Yet it takes only one miscalculated cash-flow projection, one worker reclassification, one missed new-hire background check, to put a company into financial jeopardy.
We are reposting these our site to illustrate the value of becoming a member a the American Institute of Professionals Bookkeepers after taking our Bookkeeping courses.
- Where Is That Transaction Recorded? – Source Documents and where to record transactions in ledger
- Freelancing: Helpful Hints on Billing – Bookkeeping services to clients
- Recording Bad Debt for Tax v. Book Purposes – Difference on the two Bad Debt options
- Your Liability as a Bookkeeper – The responsibility a bookkeeper has with their boss or client
- Tips on Handling the IRS – Great quick tips to reducing time invested in resolving tax issues
- Protecting Yourself When Making Deposits at Night – Security and controls
- What Does “GAAP” Really Mean? – Interpretation of Generally Accepted Accounting Principles
- A Better Way to Book Purchase Discounts – Discounts from Vendors for paying early
- Freelancing: A Steady Stream of New Clients – Grow your practice
- Bookkeeper’s Quiz: How Good Are Your Skills? – Stay sharp on the technical skills!