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.

Mastering Journal Entries: A Comprehensive Guide with Examples

Journal entries (JEs), the foundation of all accounting processes, are used for accurately recording every financial transaction in the account books. Knowing how they work is key in maintaining accurate and reliable financial records, which you need for both decision-making and regulatory compliance. This guide is also related to our articles on understanding journal entries

Read more

Understanding Debits and Credits

Understanding debits and credits helps you keep track of every money move in two ways: one account gets debited and another gets credited. This helps you catch mistakes, keep your financial records straight, and understand where your money is going. This guide will help you understand the basics of debits and credits, which accounts a

Read more

Understanding accounts payable

Introduction Accounts payable is what your business owes, but hasn’t yet paid. You receive a bill from your lawyer, independent contractor, or software company – that’s accounts payable. This article will help you understand all the important basics of accounts payable. This guide is also related to our articles on understanding prepaid expenses, bank reconciliation

Read more

Understanding Credit Memos

Credit memos are documents that lower the amount a customer owes you. They can be created for many reasons, including customer overpayment, damaged goods, pricing errors, promotional discounts, early payment discounts, and service failures. Credit memos are an important factor in managing your Accounts Receivable and, more importantly, your relationships with customers. If your customer

Read more

Year-End Bookkeeping Checklist for Small Businesses

A year-end bookkeeping checklist is a tool for small business owners to ensure their financial records are complete and accurate before the year concludes.  In this article, we’re going to walk you through each step of the year-end bookkeeping process.  This guide is also related to our articles on common accounting errors and how to

Read more

Understanding Accounts Receivable

Accounts receivable (AR) represents the money that customers owe to a business for products or services they have received but haven’t paid for yet.  Managing AR well is important because it helps a business have enough cash on hand for its daily operations and growth. This article will explain the basics and tips for good

Read more

Outsourced Bookkeeping Services

Outsourced bookkeeping lets you focus on growing your business, knowing your money is being handled by experts. It saves time and helps avoid money mistakes. In this article, we’ll discuss the benefits of outsourcing your bookkeeping, how to choose the right service, and the impact it can have on your business’s growth and financial health.

Read more

What is a Chart of Accounts?

Just as every ship captain needs a map, every business owner needs a Chart of Accounts (CoA). It’s your financial map, guiding you through the complexities of your business’s financial landscape. The Chart of Accounts is pivotal for recording, organizing, and reporting your business’s financial transactions.  This article is related to other concepts such as

Read more

Understanding Nonprofit Accounting

Running the finances of your nonprofit can seem tricky, especially if you’re new or not a big fan of accounting.  Just like running a small business, it’s important to keep a close eye on your money. This means making sure you’re getting the most out of every donation, grant, and fundraising effort.  We’ve put together

Read more

Understanding Owner’s Equity

Welcome to our guide on the essentials of understanding owner’s equity for small business owners. The concept of owner’s equity in the realm of small businesses is all about understanding what truly belongs to you, the owner, after all your business debts are settled. The state of your equity is essential to consider when you’re

Read more

Bank Reconciliation Example: Step by Step

Bank reconciliations are one of the most important parts of your closing process to produce financial statements. We’re going to use the example of a company called GadgetFlow Inc. to walk through the steps of reconciling a bank account. This guide is also related to our articles on understanding journal entries in accounting, understanding and

Read more

Double-Entry Accounting: The Basics

You’ve found the Rigits guide to understanding double-entry accounting. This guide is designed specifically for small business owners, aiming to demystify the principles of double-entry accounting and show how they can be applied to everyday financial management. This guide is also related to our articles on understanding journal entries in accounting, understanding owner’s equity, and

Read more