Lesson 1Month-end and year-end closing checklist for an accrual small business: reconciliations, cutoffs, deferred revenue, accrued liabilities, and fixed-asset rollforwardCover month-end and year-end close steps for an accrual-basis small business, including reconciliations, cutoff testing, deferrals, accruals, and fixed-asset rollforwards to ensure accurate financial statements and audit-ready support.
Bank and credit card reconciliationsAged AR and AP review and adjustmentsRevenue and expense cutoff testingDeferred revenue and accrued expense entriesFixed‑asset rollforward and tie‑outsClose checklist, sign‑offs, and controlsLesson 2Fixed asset accounting for computer equipment and laptops: capitalization thresholds, useful lives, depreciation (MACRS vs book), asset tagging and disposalDetail fixed-asset accounting for computer equipment and laptops, including capitalization thresholds, useful lives, book versus MACRS depreciation, asset tagging, disposals, and maintain schedules dat reconcile to de general ledger.
Capitalization policy and thresholdsDetermining useful lives for equipmentBook versus MACRS tax depreciationFixed‑asset subledger and taggingImpairments, disposals, and write‑offsReconciling fixed assets to the GLLesson 3Payroll accounting for California employees: gross to net payroll, employer payroll taxes, payroll accruals, recording payroll journal entries and benefitsFocus on California payroll accounting from gross to net, including employer payroll taxes, required withholdings, payroll accruals, and record payroll and benefits journal entries while align with federal and state compliance.
Gross‑to‑net payroll calculation stepsFederal and California payroll tax withholdingsEmployer payroll tax and benefit costsPayroll accruals at month‑end and year‑endRecording payroll and benefit journal entriesReconciling payroll reports to the GLLesson 4Foreign contractor payments (India): recording cross-border payments, GST considerations (if any for documentation), and monitoring for withholding requirementsAddress accounting for payments to Indian contractors, including record cross-border payments, evaluate GST documentation needs, monitor U.S. and Indian withholding requirements, and manage FX and banking documentation.
Onboarding Indian contractors and KYCCross‑border payment methods and timingGST documentation and invoice reviewU.S. and Indian withholding checksFX rates, remeasurement, and gainsBank records and compliance supportLesson 5Software subscriptions and cloud services: expense vs capital treatment, prepaid arrangements, amortization of implementation costsExplore accounting for software subscriptions and cloud services, including expense versus capitalization, prepaid arrangements, and amortization of implementation and setup costs under U.S. GAAP for a growing technology-driven service business.
Identifying SaaS vs on‑premise softwareExpense vs capitalization assessmentAccounting for prepaid subscriptionsImplementation and setup cost amortizationVendor contracts and term reviewsSubledger and schedule maintenanceLesson 6Accounting for independent contractors: 1099-eligible payments, accrual vs cash recognition, withholding exceptions, and classification documentationExplain accounting for independent contractors, including identify 1099-reportable payments, accrual versus cash recognition, backup withholding exceptions, and maintain documentation to support worker classification decisions.
Contractor vs employee classificationTracking 1099‑eligible paymentsAccrual vs cash expense recognitionBackup withholding and exceptionsW‑9 collection 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 liabilitiesCover loan accounting for bank debt, including record proceeds, build amortization schedules, recognize interest expense, monitor debt covenants, and classify balances between current and long-term liabilities on de balance sheet.
Recording loan proceeds and feesBuilding an amortization scheduleInterest expense and effective rateCurrent vs long‑term debt classificationDebt covenants and monitoringLoan confirmations and reconciliationsLesson 8Accounts payable, accruals, and reconciliations: vendor invoice matching, month-end accruals for services, and supplier foreign paymentsFocus on accounts payable, accruals, and reconciliations, including vendor invoice matching, month-end accruals for services, foreign supplier payments, and controls to ensure completeness, accuracy, and timely disbursements.
Three‑way match and invoice approvalsAP aging review and cutoff testingService accruals at month‑end closeForeign vendor payments and FX impactAP subledger to GL reconciliationsControls over disbursements and changesLesson 9Recording service revenue from U.S. and foreign clients: invoicing, foreign currency invoicing and translation, revenue recognition with milestone vs. time-based billingExplain how to invoice U.S. and foreign clients, handle foreign currency, and apply revenue recognition for milestone and time-based service contracts, including documentation, timing of recognition, and common small-business pitfalls.
Standard and recurring invoicing workflowsForeign currency invoicing and FX translationMilestone‑based revenue recognitionTime‑based and retainer revenue recognitionHandling discounts, credits, and refundsRevenue documentation and audit trailLesson 10Operating expenses: travel, client meals, and online advertising — proper documentation, per-diem and meal deduction limits, allocation between marketing and client developmentAddress operating expenses for travel, client meals, and online advertising, emphasize documentation, per-diem and meal deduction limits, and proper allocation between marketing, client development, and general administrative categories.
Travel expense policies and approvalsClient meals and entertainment limitsPer‑diem rules and substantiationOnline advertising and campaign trackingAllocating marketing vs client developmentExpense documentation and retention
