Framework Bookkeeping

We are excited to let you know that Framework has openings to work with new clients!

We are available to assist you virtually with various admin and bookkeeping tasks related to your small business. Working together, you can take back extra time and spend it how you please within your business. Here are some services we offer:
-assistance with general admin tasks,
-email and calendar management,
-business registration information,
-monthly bookkeeping services,
-regular sales tax filing,
-and year-end tax preparation.

If you are interested in stepping back from any administrative components of your company, we would love to discuss things further. Please reach out to us via direct message!

What does the term accounts receivable (AR) mean?

Simply put: accounts receivable is the balance that is owed to your business from a client based on any products or services you provided.

This is money that will be paid to your business by the invoice due date, which will show as a current asset on your balance sheet. It is an important term to know in accrual accounting.

Keeping any eye on your accounts receivable will let you know what income you have coming your way. It is also the best way to keep track of what invoices haven't been paid and should be followed up on accordingly. Ultimately, it will give a clear understanding of a company's liquidity (which is a very important thing to have).

Do you have questions about getting your books set up to provide yourself with a clear picture of your business? We would love to chat!

The end of the year is approaching quickly 📆 I know, I know, it can be overwhelming! Depending on what kind of business you run, this may be an extremely busy time for you. On top of your regular workload is now the realization that you've got to wrap up your books in time for tax season!

Here are some tips to help ease the overwhelm:

-Collect all your bank and credit card statements. These will be used alongside your books to ensure there weren't any missed transactions or errors in your records.

-Prepare to count inventory on the last day of your fiscal year. It's so important to start the new year knowing what products you've got on hand.

-Check that all your invoices are cleared and accounted for. Additionally, make sure any outstanding bills that you owe are paid for.

But most importantly, give yourself a moment to reflect on the year. Understand what direction you want your business to go in the upcoming months. Taking the time to reflect will help you see the bigger picture and ultimately make better decisions for both you and your company!

If year end prep is a daunting task for you, Framework can help. Reach out to us if you are looking for support with your year end tasks and tax preparation!

What does it mean to reconcile your bank accounts?

This is the process in which you compare each transaction from your bank or credit card statement with what was recorded in your books. This is an important practice as it ensures your records are accurate and organized each month.

A bookkeeper will usually complete this task at the end of every month, but more regularly if a large number of transactions are involved. At the end of the reconciliation, the balance of the bank account and the company books should be the same.

What it comes down to, as always with bookkeeping, is that maintaining accurate records is absolutely key. We highly recommend making reconciliations a consistent part of your monthly bookkeeping practice, whether you DIY or get us to!

It is so important to know the financial health of your company as a business owner. Having an understanding of your revenues vs expenses is a key part of this. If you want a clear picture of your financial condition, you can get one through calculating your net profit.

So, let’s tell you how to do that!

First of all, we want to clarify the difference between gross profit and net profit. Gross profit is the total income that remains after all production expenses are subtracted from sales. The net profit is the income that remains after ALL company costs are subtracted. This is more than just the production costs, but includes all operating expenses as well.

Now that we have the terms sorted out, below is the formula for calculating your net profit.

Net Profit = Total Revenues - Total Expenses

Completing this calculation will give you a better understanding of your company’s actual profitability since it includes all of the expenses incurred in the defined period. It is a great tool that will provide insight into the business’s overall standing.

It feels really good to know how your business is doing, so we suggest you indulge in some essential financial reporting time (or ask us to help you with it)!