FAQs

All your Questions answered in one place

Some of your Questions:

Q.What’s more important, income statements or balance sheets?

At the risk of sending all accountants into apoplexy, I feel that the income statement is the more important document. The income statement tells you if you are making money and delineates your costs and expenses.

Q.How can a balance sheet help me?

A balance sheet shows you how your assets are being used. For instance, from a balance sheet you should be able to tell whether or not your inventories are too large, whether your receivables are growing, or whether your ratio of debt to equity is getting too high.

Q.Do I really need to create a balance sheet each month?

If your business is really small, you can manage it fine without creating a balance sheet each month. But any size business, including a part-time one, needs to create a good profit and loss statement each month. And, if inventories or accounts receivables are important in your business, balance sheets will clearly point out any significant fluctuations that you should be aware of.

Q.How can accounting help me make money?

Quite simply, accounting tells you if you are making money. If you create a profit and loss statement each month, you can ascertain your position quickly. If you are losing money, you can make changes in your operations, such as increasing prices or reducing expenses, to correct the situation long before the year’s end and ensure that your overall year will still be profitable.

Q. If I pay my invoices online, is the payment processing system secure?

The payment processing system utilizes a third-party payment provider to process payment transactions. The payment provider's system was created to be secure and address issues of confidentiality, data integrity, non-repudiation, and auditability utilizing industry standard 128-bit encryption, data integrity checking, and logging.

Q. Is the payment processing system secure?

The online payment processing system utilizes a third-party payment provider to process payment transactions. The payment provider's system was created to be secure and address issues of confidentiality, data integrity, non-repudiation, and auditability utilizing industry standard 128-bit encryption, data integrity checking, and logging.

Q. If I pay my company's invoices online, will a receipt or confirmation of payment be provided?

Yes. The payment Web site provides a Receipt of Payment page that provides the amount paid, a transaction number, and date of payment. Please note that these transactions may take 3-4 business days to clear your bank account. This receipt, assuming it is for the full amount invoiced, along with proof of debit from your bank account, constitutes confirmation of your payment. Please see Questions 18 through 25 for issues relating to determination of status of outstanding balances.

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