BASIC BOOKKEEPING
This is the financial statement that shows your revenue and expenses over a period of time.
What is a Profit & Loss Statement (Income Statement)?
This federal tax is withheld from employee paychecks to fund retirement benefits for workers.
What is Social Security tax?
These expenses are common and accepted in your industry and can usually be deducted.
What are ordinary and necessary expenses?
This term describes money coming into and leaving your business.
What is cash flow?
This professional helps maintain your financial records and categorize transactions.
What is a bookkeeper?
This account tracks money coming into your business from customers.
What is Revenue (or Sales)?
This document employees fill out to determine how much federal tax should be withheld.
What is a W-4 Form?
Driving your personal vehicle for business purposes may qualify for this deduction.
What is business mileage?
When expenses are greater than revenue, your business is operating at this.
What is a loss?
This professional prepares tax returns and provides tax advice.
What is a CPA or tax professional?
This account represents money customers owe your business.
What is Accounts Receivable?
This form reports wages paid and taxes withheld for employees at the end of the year.
What is a W-2?
This expense includes software tools like accounting, CRM, or project management programs.
What are software subscriptions?
This financial habit helps business owners plan for taxes throughout the year.
What is setting aside money for taxes?
Reviewing your financial reports every month helps you understand this.
What is how your business is performing?
This financial report shows what your business owns, owes, and its equity at a point in time.
What is a Balance Sheet?
This payroll tax is used to fund unemployment benefits.
What is Unemployment Tax (FUTA/SUTA)?
If you regularly and exclusively use part of your home for business, you may qualify for this deduction.
What is the home office deduction?
This report shows how cash moves through operating, investing, and financing activities.
What is a Statement of Cash Flows?
Software commonly used by small businesses for bookkeeping.
What is QuickBooks?
This accounting method records income when it’s earned and expenses when they occur, even if cash hasn’t moved yet.
What is Accrual Accounting?
This is the difference between an employee’s gross pay and the amount they take home.
What are payroll deductions?
Keeping receipts and accurate records helps support deductions in case of this event.
What is an IRS audit?
Failing to manage this is one of the most common reasons small businesses struggle financially.
What is cash flow management?
Working with professionals can help businesses stay compliant and avoid this.
What are tax penalties or compliance issues?