Keeping business and personal finances separate in QuickBooks

Keeping business and personal finances separate in QuickBooks

Keeping business and personal financials separate is essential for any freelancer or small business owner. The usual advice is to keep two separate QuickBooks company files--one for business and one for personal finances. While ideal from an accounting perspective, this method isn't the most practical solution for a busy professional. Here's how to keep your finances separate while also being able to see the whole picture in a single report.

Cash vs. accrual basis for bookkeeping

Cash vs. accrual basis for bookkeeping

Cash or accrual--how do you choose? Each method has its pros and cons, and picking one really depends on your needs and the needs of your business. The most important question to ask yourself is, what do I need to know from my accounting system? The answer to this question will determine whether you should go with the cash method or opt for the generally more expensive and time-consuming accrual method.