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.

How to calculate amortization with examples

Introduction Amortization, in financial and accounting terms, involves spreading payments over multiple periods for loans or allocating the cost of intangible assets over their useful lives. This article will explain the basic terms and show calculations and examples of different kinds of amortization. This guide is also related to our articles on understanding journal entries

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Crafting an effective price increase letter

Introduction A price increase letter is a note a business sends to its customers to tell them the prices of products or services are going up. It explains why the business needs to charge more because of changes inside the company or in the wider market. This guide explains why you should review prices regularly,

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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

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Accountant vs CPA: What’s the Difference?

While both accountants and CPAs (Certified Public Accountants) work with financial statements, the distinction lies in a CPA’s licensure, which grants higher responsibilities. This distinction not only affects the scope of work they can perform but also impacts their authority and the trust placed in their financial assessments. This guide will walk you through the

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What is a Virtual CFO?

A virtual CFO (Chief Financial Officer) provides expert financial advice and services remotely, offering a cost-effective solution for small businesses needing strategic financial guidance without the overhead of a full-time CFO. This article will explore how a virtual CFO can transform your business’s financial health, the services they offer, and how to decide if it’s

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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

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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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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

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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

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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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How to Value a Small Business

Figuring out what your small business is worth can be tricky, but knowing its value is crucial, whether you’re selling, seeking investment, or planning for the future. We’ll walk you through how to do just that, touching on methods from cash flow analysis to comparing similar businesses. This guide is also related to our articles

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Zero-Based Budgeting with Examples

Zero-based budgeting starts every budget from scratch, asking you to justify each dollar you plan to spend. It’s a method that can uncover inefficiencies and allocate resources more effectively. We’ll explain how zero-based budgeting works, its benefits, and how to implement it in your small business for better financial control. This guide is also related

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