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Have you ever run a Profit & Loss and noticed a random income line item called "Unapplied Cash Payment Income"? What is this, and how do we get rid of it? What is Unapplied Cash Payment Income? Unapplied cash payment income is just that—income that cannot be applied to a specific invoice because no invoice exists, at least not as of the payment date. When something hits the Unapplied Cash Payment Income line item, it is always a result of incorrect dates. For instance, if you

"Undeposited Funds" is a temporary holding account on your balance sheet (note the word “temporary” ;). You should care because it can hide a lot of errors related to revenue, oftentimes leading to overstated sales (meaning you’re going to overpay on your taxes!). How does Undeposited Funds get off track? The source is almost always incorrect matching in QBO bank feeds. A lot of companies use third-party apps to run their business, like Job Progress/Leap, Clio, Housecall Pro

As the year draws to a close, one often-overlooked but critical step is tying out (or reconciling) your loan balances to the official loan statements from your lender. "Tying out" your loans means verifying that your recorded loan balance showing on your Balance Sheet matches what the lender reports. Here's why making this a year-end habit is so important. 1. Ensures Accurate Financial Reporting Your loan balance is a key liability on your balance sheet. If your records don't

Starting a new business is an exciting journey, but managing your finances effectively from the outset is critical to long-term success. A solid financial foundation helps you track cash flow, stay compliant, and make informed decisions. Here’s a step-by-step guide to setting up your finances as a new business owner to ensure you’re positioned for growth and stability. 1. Separate Personal and Business Finances One of the biggest mistakes new business owners make is mixing pe

We've all done it—we're cranking through our QuickBooks Online bank feeds, and accidentally post a deposit that should've been matched to...

If I made that much profit this year, why isn't my bank account balance higher?