Rigits Blog Articles

This blog includes 70+ bookkeeping and accounting articles about mastering and utilizing your financials for growth, like…

  • Guides on financial terms, statements and concepts
  • Accounting & bookkeeping software, books, and tools
  • How to find local bookkeepers, accountants and fractional CFOs

Start browsing, learning, and implementing these insights to grow your business.

Year-End Closing for Small Businesses

Year-end closing is the process of updating your accounts to accurately reflect your business’s activities before you finalize your financial statements.  This includes making adjustments for things like expenses that have been incurred but not paid (like bills) and revenues for services you’ve provided but haven’t yet billed. In this article, we’ll walk you through

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Understanding Unearned Revenue

Unearned revenue represents payments received for services not yet performed or goods not yet delivered. It’s crucial for small business owners because it affects both your cash flow and how you report income. This article will cover how to recognize, manage, and report unearned revenue, ensuring you’re accurately reflecting your business’s financial health. This guide

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Operating Income vs. Net Income

Know your business’s financial health by understanding two key figures: operating income and net income. Use them to tweak your strategy, check how you’re doing, or show off your financial health to investors and lenders. Here’s a straightforward guide to help you, the small business owner, get the hang of operating and net income. This

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Accrued Expenses: Practical Examples

Accrued expenses are money that your business owes but hasn’t paid yet. These could be bills or wages that you need to pay in the future.  They are important for understanding your business’s real financial situation, even if the cash hasn’t moved yet.  This guide helps you recognize and manage these expenses simply and clearly

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Understanding Net 30 Payment Terms

Net 30 payment terms offer a flexible yet structured way to manage payments and receivables.  When you issue Net 30 terms to customers, it means they have 30 days to pay you. Vice-versa with vendors, if your payment terms are net 30, you have 30 days to pay your bill.  This article will show you

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Modified Cash Basis Accounting

This guide talks about a less known but handy way to do your accounting: the modified cash basis. It doesn’t matter if you’re well into your business journey or just starting; knowing your options for keeping track of your finances is crucial. This guide is also related to our articles on cash vs. accrual accounting,

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Operating Income vs EBITDA

Understanding how well your business is doing financially means looking beyond just revenue and profits. Operating Income and EBITDA are two crucial metrics that show your business’s efficiency and earnings power. This guide breaks down these metrics into simple terms, helping you use this info to boost your business. We’ll explain what Operating Income and

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What Are Back Office Services?

You’ve found the Rigits guide to back office services!  Back office services are tasks like accounting, data management, and technical support.  This guide is designed to help you, the small business owner, navigate through the various aspects of back office operations, understand their importance, and make informed decisions about managing them efficiently.  This guide also

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Understanding Prepaid Expenses

You’ve found the Rigits guide to understanding prepaid expenses.  This article is meant specifically for small business owners like you, aiming to demystify the concept of prepaid expenses. We’ll guide you through what prepaid expenses are, why they might be important for your business, and how to utilize them effectively. This guide is also related

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Understanding Retained Earnings

Let’s dive into the world of retained earnings a number that reveals the effect of your profitability and cash reinvestment over time.  This guide is also related to our guides on understanding owner’s equity, how to read a balance sheet, and double-entry accounting: the basics. In this article, we’re going to break down everything you

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Understanding and Calculating EBITDA

EBITDA is more than a piece of financial jargon; it’s a key to unlocking insights into your business’s operational performance. By grasping how EBITDA works, you can make more informed decisions, attract potential investors, and steer your business toward greater profitability. This guide is crafted to demystify EBITDA for you, the small business owner. We’ll

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Understanding Gross vs. Net Profit

You’ve found our guide understanding net vs. gross profit. When it comes to running a business, understanding the key difference between gross and net profit is crucial to small business owners. Gross profit and net profit are two key metrics that service as guideposts for you to gauge how healthy your business is. These principles

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