small business bookkeeping questionsTwice in this past week bookkeeping clients have asked me to clarify something about their accounts that they didn’t know.

Both were a little embarrassed that they didn’t know these things, but unless they ask me I don’t know that they don’t know, if you get my drift.

So What Don’t You Know?

  • Maybe it’s some accountancy jargon that your accountant uses at meetings that you are a bit too embarrassed to ask the meaning of.
  • Maybe its something you’ve read somewhere, maybe in your accounts, in a book, or online, and don’t know what it means.

Now’s your chance to find out …..

Ask me in the comments below or if you’d sooner not reveal your identity then you can email me in confidence, using the contact page.

I will use the questions asked to build a resource on this site.

You’ll be getting your question answered as well as helping lots of people too.

I’ll start the ball rolling with the two questions I had this week:

  1. What is net profit? The net profit for your business is the figure resulting from subtracting your business expenses from your business income over a set period of time, normally a year, but it can be calculated at any time. In your accounts, the schedule that documents your business income and expenditure is called a profit and loss account. Your net profit is the figure used to calculate your tax bill.  You can read an article here about expenses that are not included in your profit and loss account.

  3. If I pay my credit card balance off does this reduce my net profit?  No.  It will only reduce your bank balance and your credit card balance. Anything paid for using your credit card, in the past, if it was a business expense, would have been in your profit and loss account at that time.

It may be a cliché but remember the only stupid question is the one you don’t ask.

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