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Bookkeeping is the process of keeping full and up-to-date business records. It’s the recording of financial transactions. Transactions include sales, purchases, income, and payments whether by organizations or individuals. A bookkeeper must make sure all transactions are recorded in the correct daybook, suppliers ledger, customer ledger, and general ledger. Although a bookkeeper is called an accounting clerk, or an accounting technician, don’t confuse bookkeeping with accounting. An accountant uses a bookkeeper’s records to create financial reports. Since the jobs are similar, many bookkeepers have the potential to become (or are) accountants also.

There are two common systems that bookkeepers use to record financial transactions. Small businesses primarily use the single-entry system. This system uses only income and expense accounts, recorded primarily in a revenue (money earned) and expense journal. The double-entry system is more complicated, and makes sure that the books are error-free. This system does this by recording transactions in two different nominal ledgers (two parts) of the books, and using a balance system of debits and credits. Having the data recorded in two different ledgers allows the bookkeeper to recover from an error in one, by looking at the other…at least in theory.

Financial transactions are recorded in several different books. These, starting with the daybook, contains the most detailed records. Sometimes daybooks are not kept, so everything is recorded in journals. The totals in each section (sales, purchases, credits, cash etc.) are recorded in the ledgers. Ledgers also have different sections, and they are used to make the balance sheet and income statement. Ledgers often include:

* Customer ledger, for financial transactions with a customer (sometimes called a sales ledger).

* Supplier ledger, for financial transactions with a supplier (sometimes called a purchase ledger).

* General (nominal) ledger representing assets, liabilities, income, and expenses.

When a bookkeeper wants to check the books for errors, they bring them to a trial balance stage. At this stage, they create a worksheet listing the balance of each ledger account, in two columns (debit and credit), at a certain date. Under the double-entry system,a transaction’s debits must equal it’s credits. Trial balance is often used as a tool to probe for errors. If the debits and credits don’t balance, then there is an error. Even if the difference of the debits and credits is zero (debits-credits=0); there can still be errors. For instance: if a transaction is omitted (error of omission), the totals will not be effected. A trial balance is a statement of ledger.

Now, bookkeeping can be done on the computer. This is called computerized bookkeeping. Computerized bookkeeping allows much of the paper “books” to be eliminated, therefore saving trees (but not electricity). The main advantage however, is the increased speed at which bookkeeping can be accomplished.

Bookkeeping can be very time consuming. Therefore most small business owners use a bookkeeping service. Large businesses on the other hand often hire a bookkeeper–or several. There is no need to visit a bookkeeper when you have the internet, however. You can submit financial information to a bookkeeper online, in the convenience of your own office!

So what are these books used for? Aside from providing strategic information to the owner, a company’s books are used to allow an accountant to create financial reports, and determine what taxes companies must pay. Its for you and the government.

See also: http://en.wikipedia.org/wiki/Bookkeeping

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With the popularity of Flash quiz, more features and functions are added to quiz maker. Time limit is one important property of quiz settings. It enables users to set time for the entire test and also for the individual question, so that the test gets a strict time limitation and a good guarantee of the fairness in the process of taking a quiz.
Users can set time limit for the whole test; thus all the participants must finish the quiz in due time. If it is out of time, quiz takers can’t answer the question any more. Compared with this function, the time limit for each question seems to make the quiz more efficient in time control. People are also able to set different time limit for each question. Users can adopt this function in several situations like the following ones.
1. Avoid cheating.
Once the quiz publisher adds proper time limit to each question, the participants will get no extra time to cheat through searching internet or books for answers. Quiz participants would probably just get enough time to take the quiz by themselves, so the fairness can be comparatively well guaranteed.
2. Make strict time-limit questions.
Some tests require the strict time limit in parts of the questions such as the part called “Fast Reading” in language test. Thus it is necessary to set the time limit for each question in the quiz. Also because of the powerful time control, time limit can add more fun to quiz game. To save testing time, it is also necessary to set different time limit for the questions according to the level of difficulty.
There are various uses of the quiz with time limit for each question. To make this function well served, users need to pay attention to some details:
1. Set proper time limit.
Never set the time too short or too long. If it is too short, the quiz takers may not get enough time to answer the question and feel nervous; if too long, the setting of time limit for each question is meaningless at last. Before making the time limit, users are supposed to set the clear purpose of the quiz, evaluate the questions, and also know more about the basic feature of target participants.
2. Offer time limitation instruction clearly to participants.
The quiz with time limit for each question has the strict constraint on time. If the participants overlook or don’t know that, they may not finish the quiz in time, and it can result in a failure in test. Users can use the function called “blank page” to add the time limitation instruction for the quiz.
Quiz makers are easy to find in the market. There are online Webs and also the standalone software can help you to create quizzes, but few can support the time limit for each question well. The following quiz maker software are worth trying: QuizCreator and articulate QuizMaker.

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The Challenge of Deducting Medical Expenses

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Question: I bought my mom a car as a gift, although it was titled in her name. Can I deduct the sales tax on my taxes?

I made the check payable to the dealer for the amount of the car; however, the dealer listed her as the “buyer” on all the paperwork. She does not itemize, so the sales tax deduction is worthless to her. It’s a gift to her either way, but could I construe the gift as being the car (since I made the check payable to the dealer) versus the money?

Answer: Had you bought the car in your name and then gifted it, you would have a deduction. It sounds however that you gifted the deduction to her.
The result may be true, but it also seems unfair as a result of a technicality.
You may a case for claiming the deduction, but it isn’t a strong one. You could try, and if you get examined, just cave in. If you don’t get examined, then you win.
The above advice is solely because I think you have a case. Otherwise, I would not recommend it. Just so you understand I’m not trying to cross any lines, just resolving doubt in your favor.

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Nail down tax breaks now that might not be around next year

Doing some year-end tax planning could be productive this year so you can nail down a host of tax breaks that might not be around next year unless Congress extends them.

Tax Deduction Tips & Advice : How to Determine if You Can Itemize Tax Deductions

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Ten Tips For Deducting Your ‘Hobby’

Here’s how to keep Uncle Sam from claiming your small side business is really a hobby.