Practical guides on bookkeeping, cash flow and reporting

Matching every transaction in your books to the bank or card statement until the closing balances agree.

Recording income when it is earned and expenses when they are incurred, not when cash moves.

Cost of goods sold: the direct cost of the products you sold in a period, including materials and landed costs.

Money customers owe you for invoices you have already sent.

Cash received in advance for work or products you have not delivered yet. It sits on the balance sheet until earned.

The routine of reconciling, reviewing and locking a month so reports for that period are final.

Revenue minus cost of goods sold, shown as a percentage of revenue. It tells you what each sale contributes before overheads.

The IRS form a US business uses to report payments to independent contractors above the annual reporting threshold.