Bookkeeping All-In-One For Dummies

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Dummies Consumer. Bookkeeping All-In-One For Dummies

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go From Here

Book I. Keeping the Books

Chapter 1. Basic Bookkeeping

Bookkeepers: The Record Keepers of the Business World

Delving into Bookkeeping Basics

Recognizing the Importance of an Accurate Paper Trail

Using Bookkeeping’s Tools to Manage Daily Finances

Running Tests for Accuracy

Finally Showing Off Your Financial Success

Wading through Bookkeeping Lingo

Pedaling through the Accounting Cycle

Tackling the Big Decision: Cash-basis or Accrual Accounting

Seeing Double with Double-Entry Bookkeeping

Differentiating Debits and Credits

Chapter 2. Charting the Accounts

Getting to Know the Chart of Accounts

Starting with the Balance Sheet Accounts

Tracking the Income Statement Accounts

Setting Up Your Chart of Accounts

Chapter 3. The General Ledger

The Eyes and Ears of a Business

Developing Entries for the Ledger

Posting Entries to the Ledger

Adjusting for Ledger Errors

Using Computerized Transactions to Post and Adjust in the General Ledger

Chapter 4. Keeping Journals

Establishing a Transaction’s Point of Entry

When Cash Changes Hands

Managing Sales Like a Pro

Keeping Track of Purchases

Dealing with Transactions that Don’t Fit

Posting Journal Information to Accounts

Simplifying Your Journaling with Computerized Accounting

Chapter 5. Controlling Your Records

Putting Controls on Your Business’s Cash

Keeping the Right Paperwork

Protecting Your Business Against Internal Fraud

Insuring Your Cash through Employee Bonding

Chapter 6. Computer Options for Bookkeeping

Surveying Your Software Options

Setting Up Your Computerized Books

Chapter 7. Financial Statements and Accounting Standards

Reviewing the Basic Content of Financial Statements

Contrasting Profit and Cash Flow from Profit

Gleaning Key Information from Financial Statements

Keeping in Step with Accounting and Financial Reporting Standards

Book II. Accounting and Financial Reports

Chapter 1. Financial Report Basics

Figuring Out Financial Reporting

Checking Out Types of Reporting

Introducing the Annual Report

Digging Deeper into the Annual Report

Summarizing the Financial Data

Chapter 2. Reporting Profit

Introducing Income Statements

Finding Profit

Getting Particular about Assets and Operating Liabilities

Summing Up the Diverse Financial Effects of Making Profit

Reporting Extraordinary Gains and Losses

Correcting Common Misconceptions About Profit

Closing Comments

Chapter 3. Exploring Business Structures

Flying Solo: Sole Proprietorships

Joining Forces: Partnerships

Seeking Protection with Limited Liability Companies

Shielding Your Assets: S and C Corporations

Investigating Private Companies

Understanding Public Companies

Entering a Whole New World: How a Company Goes from Private to Public

Chapter 4. The Balance Sheet: Assets, Liabilities, and Equity

Understanding the Balance Equation

Introducing the Balance Sheet

Ogling Assets

Looking at Liabilities

Navigating the Equity Maze

Chapter 5. The Income Statement

Introducing the Income Statement

Delving into the Tricky Business of Revenues

Acknowledging Expenses

Sorting Out the Profit and Loss Types

Calculating Earnings per Share

Chapter 6. The Statement of Cash Flows

Digging into the Statement of Cash Flows

Checking Out Operating Activities

Investigating Investing Activities

Understanding Financing Activities

Recognizing the Special Line Items

Adding It All Up

Chapter 7. Getting a Financial Report Ready

Recognizing Top Management’s Role

Reviewing the Purposes of Financial Reporting

Keeping Current with Accounting and Financial Reporting Standards

Making Sure Disclosure Is Adequate

Putting a Spin on the Numbers (Short of Cooking the Books)

Going Public or Keeping Things Private

Dealing with Information Overload

Statement of Changes in Owners’ Equity

Chapter 8. Accounting Alternatives

Setting the Stage

Taking Financial Statements with a Grain of Salt

Explaining the Differences

Calculating Cost of Goods Sold Expense and Inventory Cost

Recording Depreciation Expense

Scanning Revenue and Expense Horizons

Book III. Day-to-Day Bookkeeping

Chapter 1. Buying and Tracking Your Purchases

Keeping Track of Inventory

Practice: Working with Inventory and Calculating Cost of Goods Sold

Buying and Monitoring Supplies

Staying on Top of Your Bills

Practice: Calculating Discounts

Answers to Problems on Buying and Tracking Your Purchases

Chapter 2. Counting Your Sales

Collecting on Cash Sales

Practice: Recording Sales in the Books

Selling on Credit

Practice: Sales on Store (Direct) Credit

Proving Out the Cash Register

Practice: Proving Out

Tracking Sales Discounts

Practice: Recording Discounts

Recording Sales Returns and Allowances

Practice: Tracking Sales Returns and Allowances

Monitoring Accounts Receivable

Practice: Aging Summary

Accepting Your Losses

Answers to Counting Your Sales

Chapter 3. Employee Payroll and Benefits

Setting the Stage for Staffing: Making Payroll Decisions

Collecting Employee Taxes

Determining Net Pay

Practice: Payroll Tax Calculations

Surveying Your Benefits Options

Preparing Payroll and Posting It in the Books

Practice: Payroll Preparation

Finishing the Job

Depositing Employee Taxes

Outsourcing Payroll and Benefits Work

Answers to Problems on Employee Payroll and Benefits

Chapter 4. Employer-Paid Taxes and Government Payroll Reporting

Paying Employer Taxes on Social Security and Medicare

Completing Unemployment Reports and Paying Unemployment Taxes

Practice: Calculating FUTA Tax

Carrying Workers’ Compensation Insurance

Maintaining Employee Records

Answers to Problems on Employer-Paid Taxes and Government Payroll Reporting

Book IV. Preparing for Year’s End

Chapter 1. Depreciating Your Assets

Defining Depreciation

Reducing the Value of Assets

Tackling Taxes and Depreciation

Setting Up Depreciation Schedules

Recording Depreciation Expenses

Chapter 2. Paying and Collecting Interest

Deciphering Types of Interest

Handling Interest Income

Delving into Loans and Interest Expenses

Chapter 3. Proving Out the Cash

Why Prove Out the Books?

Making Sure Ending Cash Is Right

Closing the Cash Journals

Using a Temporary Posting Journal

Reconciling Bank Accounts

Posting Adjustments and Corrections

Chapter 4. Closing the Journals

Prepping to Close: Checking for Accuracy and Tallying Things Up

Posting to the General Ledger

Checking Out Computerized Journal Records

Chapter 5. Checking Your Accuracy

Working with a Trial Balance

Testing Your Balance Using Computerized Accounting Systems

Developing a Financial Statement Worksheet

Replacing Worksheets with Computerized Reports

Chapter 6. Adjusting the Books

Adjusting All the Right Areas

Testing Out an Adjusted Trial Balance

Changing Your Chart of Accounts

Book V. Accounting and Managing Your Business

Chapter 1. Managing Profit

Helping Managers: The Fourth Vital Task of Accounting

Internal Profit Reporting

Presenting a Profit Analysis Template

Answering Critical Profit Questions

Taking a Closer Look at the Lines in the Profit Template

Using the Profit Template for Decision-Making Analysis

Tucking Away Some Valuable Lessons

Closing with a Boozy Example

Chapter 2. Budgeting

Exploring the Reasons for Budgeting

Additional Benefits of Budgeting

Is Budgeting Worth Its Costs?

Realizing That Not Everyone Budgets

Watching Budgeting in Action

Considering Capital Expenditures and Other Cash Needs

Chapter 3. Cost Accounting

Looking Down the Road to the Destination of Costs

Are Costs Really That Important?

Becoming More Familiar with Costs

Assembling the Product Cost of Manufacturers

Puffing Profit by Excessive Production

Chapter 4. Filing and Paying Business Taxes

Finding the Right Business Type

Tackling Tax Reporting for Sole Proprietors

Filing Tax Forms for Partnerships

Paying Corporate Taxes

Taking Care of Sales Taxes Obligations

Chapter 5. Prepping the Books for a New Accounting Cycle

Finalizing the General Ledger

Conducting Special Year-End Bookkeeping Tasks

Starting the Cycle Anew

About the Authors

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Отрывок из книги

Welcome to Bookkeeping All-In-One For Dummies! This book is a compendium of great Dummies content covering soup to nuts on bookkeeping with a good portion of accounting coverage as well.

The term bookkeeper may generate images of a mild-mannered person quietly, or even meekly, poring over columns of figures under a green banker’s lamp somewhere in a corner. In reality, the bookkeeper is vitally important and wields a tremendous amount of power within a company. Information tracked in the books helps business owners make key decisions involving sales planning and product offerings – and enables them to manage many other financial aspects of their business.

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For Dummies books use little pictures called icons to flag certain chunks of text that either you shouldn’t want to miss or you’re free to skip. Here are the icons used in this book and what they mean:

In addition to the material in the print or e-book you’re reading right now, this book also comes with some access-anywhere goodies on the Web. Check out the free Cheat Sheet at www.dummies.com/cheatsheet/bookkeepingaio for some handy bite-sized bookkeeping info, including the three elements of bookkeeping that must be kept in balance, definitions of the balance sheet and income statement, and the differences between the four types of business structures.

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