Davenport Bookkeeping

  What is a chart of accounts? The chart of accounts (COA) is an organized list of financial account numbers and names in your company's general ledger. Typically, a chart of accounts will have four categories: assets, liabilities, income, and expenses.  Accounting systems have a general ledger where you record your accounts to help balance your books. Keeping your accounts in place and up to date is important for analyzing your finances. However, your accounting requires you to record your transactions in the correct accounts. A chart of accounts helps you do just that!  Chart of accounts structure In order to understand the balance sheet and income statement for your business, you need to first have an understanding of the components that make up a chart of accounts. Knowing how to keep your company's chart organized can make it easier for you to access financial information when you need it.  Within each of the chart of accounts categories, line items distinguish ...

 As a small business owner, we wear many hats, from CEO to social media manager. When it comes to small business taxes and finances, bringing in a tac professional could be a smart move. You might wonder, "What do I need to give my accountant for small business taxes?"  When tax season comes around, having an accountant manage the details frees you up to focus on growing your business and can help eliminate mistakes on your taxes. It is important to have all your documents ready for a smooth tax process and to maximize your savings.  1. Identification Information     Your accountant will need personal information to file taxes on behalf of your small business. Here are some identification documents you will share with them: Social Security Number (SSN): Share your SSN for yourself, your spouse and any dependents along with everyone's full legal names.  Employer Identification Number (EIN): If your business has an EIN, share it with your accountant.  ...

Are you a small business owner? Do you know the three common financial statements that are key to the success of your business? For success, a business owner needs to understand the company's financial position. A financial statement can indicate whether the company is making a profit or having troubles.  There are three common types of financial statements: the balance sheet, income statement, and cash flow statement. Small business owners should know what these financial reports mean and how to use them to support data-based decision-making in their business.  What is a financial statement, and why is it important? Financial statements explain a company's financial performance and profitability over a certain period of time. They are created during financial reporting or the assessment of a company's financial health. Business owners may use another financial report—a statement of retained earnings—less frequently.  Financial statements will help the business owner...