Zankar Dawne
CA | Global Bookkeeping & Financial Reporting
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Tariffs are often discussed in terms of trade deficits, GDP and international policy. But for small businesses, the impact can be much more immediate: margins, cash flow and growth.
The recent U.S.–Canada trade tensions highlight how tariff-related costs can flow through the...
ACCOUNTING BEHIND THE SOFTWARE | DAY 10
We've gone from individual transactions to financial statements.
The basic accounting flow is:
Business Transaction
↓
Journal Entry
↓
Ledger
↓
Trial Balance
↓
Financial Statements
QuickBooks and Xero automate a large part of this process.
But...
ACCOUNTING BEHIND THE SOFTWARE | DAY 9
A business completes a $5,000 project in December.
The customer pays in January.
Under accrual accounting:
December
Dr. Accounts Receivable $5,000
Cr. Revenue $5,000
January
Dr. Bank $5,000
Cr. Accounts Receivable $5,000
The cash arrived in...
ACCOUNTING BEHIND THE SOFTWARE | DAY 8
Why is bank reconciliation important?
Because recording a transaction is only one part of bookkeeping.
You also need to make sure the accounting records agree with the actual bank activity.
A simple process:
Bank Statement
↓
Accounting...
ACCOUNTING BEHIND THE SOFTWARE | DAY 7
What happens when you categorize a $300 bank transaction as Office Expense?
What you see:
Bank Feed → Office Expense
What the accounting system records:
Dr. Office Expense — $300
Cr. Bank — $300
This is the connection between the accounting...
