Lesson 1Month-end and year-end closing checklist for an accrual small business: reconciliations, cutoffs, deferred revenue, accrued liabilities, and fixed-asset rollforwardThis covers end-of-month and year close steps for accrual small firms, including matching, cutoff checks, delays, accruals, and fixed-asset updates to make sure statements are right and ready for checks.
Bank and card matchingAged owed and due reviews and changesIncome and cost cutoff checksDelayed income and accrued cost notesFixed-asset update and linksClose list, approvals, and checksLesson 2Fixed asset accounting for computer equipment and laptops: capitalization thresholds, useful lives, depreciation (MACRS vs book), asset tagging and disposalDetails fixed-asset noting for computer tools and laptops, including capitalization limits, useful times, book vs MACRS depreciation, tagging assets, getting rid, and keeping schedules that match the main ledger.
Capitalization policy and limitsFinding useful times for toolsBook vs MACRS tax depreciationFixed-asset subledger and taggingDamage, getting rid, and write-offsMatching fixed assets to main ledgerLesson 3Payroll accounting for California employees: gross to net payroll, employer payroll taxes, payroll accruals, recording payroll journal entries and benefitsFocuses on California worker pay noting from total to net, including employer pay taxes, needed holdbacks, pay accruals, and noting pay and benefits journal entries while matching federal and state rules.
Total-to-net pay calculation stepsFederal and California pay tax holdbacksEmployer pay tax and benefit costsPay accruals at month and year endNoting pay and benefit journal entriesMatching pay reports to main ledgerLesson 4Foreign contractor payments (India): recording cross-border payments, GST considerations (if any for documentation), and monitoring for withholding requirementsHandles noting for payments to Indian workers, including cross-border payments, checking GST record needs, watching U.S. and Indian holdback rules, and managing currency changes and bank records.
Starting Indian workers and ID checksCross-border payment ways and timesGST records and bill reviewsU.S. and Indian holdback checksCurrency rates, remeasuring, and gainsBank records and rule supportLesson 5Software subscriptions and cloud services: expense vs capital treatment, prepaid arrangements, amortization of implementation costsLooks at noting for software subscriptions and cloud services, including expense vs capitalization, paid-ahead setups, and spreading out setup and start costs under U.S. GAAP for growing tech service businesses.
Spotting SaaS vs on-site softwareExpense vs capitalization checksNoting for paid-ahead subscriptionsSpreading setup and start cost amortizationVendor deals and term reviewsSubledger and schedule keepingLesson 6Accounting for independent contractors: 1099-eligible payments, accrual vs cash recognition, withholding exceptions, and classification documentationExplains noting for independent workers, including spotting 1099-reportable payments, accrual vs cash noting, holdback exceptions, and keeping records to back worker type choices.
Worker vs employee typingTracking 1099-eligible paymentsAccrual vs cash expense notingBackup holdback and exceptionsW-9 gathering and vendor setupYear-end 1099 review and filingLesson 7Loan accounting: recording bank loan proceeds, amortization schedule, interest expense recognition, debt covenants and classification between current and long-term liabilitiesCovers loan noting for bank debt, including noting proceeds, making amortization schedules, spotting interest costs, watching debt promises, and sorting balances between now and later debts on the balance sheet.
Noting loan proceeds and feesMaking an amortization scheduleInterest cost and effective rateNow vs later debt sortingDebt promises and watchingLoan confirmations and matchingLesson 8Accounts payable, accruals, and reconciliations: vendor invoice matching, month-end accruals for services, and supplier foreign paymentsFocuses on due accounts, accruals, and matching, including vendor bill matching, month-end accruals for services, foreign supplier payments, and checks to ensure full, right, and on-time payouts.
Three-way match and bill approvalsDue aging review and cutoff checksService accruals at month-end closeForeign vendor payments and currency impactDue subledger to main ledger matchingChecks over payouts and changesLesson 9Recording service revenue from U.S. and foreign clients: invoicing, foreign currency invoicing and translation, revenue recognition with milestone vs. time-based billingExplains how to bill U.S. and foreign customers, handle foreign money, and apply income noting for milestone and time-based service deals, including records, timing of noting, and common small business traps.
Standard and repeating billing flowsForeign money billing and currency changeMilestone-based income notingTime-based and retainer income notingHandling discounts, credits, and returnsIncome records and check trailLesson 10Operating expenses: travel, client meals, and online advertising — proper documentation, per-diem and meal deduction limits, allocation between marketing and client developmentHandles running costs for travel, customer meals, and online ads, stressing records, daily and meal cut limits, and right sorting between marketing, customer growth, and general admin groups.
Travel cost policies and approvalsCustomer meals and fun limitsDaily rules and proofOnline ads and campaign trackingSorting marketing vs customer growthCost records and keeping
