Introducing: Industry-Standard Double-Entry Accounting Features
As your business begins to grow, it’s important to find ways to track your progress so you can learn from your mistakes and build on your success.
Maybe you’re a music teacher who doesn’t know that a piano tune-up isn’t an expense, but an untaxed, Cost of Goods Sold and you misrepresent your margins. Maybe you’re a photographer who sells an image to a stock website and you find yourself wishing there was an easy way to track Other Income. (Spoiler alert: There is.) Bottom line: You’re missing opportunities to increase your growth potential.
To help, FreshBooks has added new double-entry accounting features that open up a world of business insights, make it easier to collaborate with accounting professionals, and give you the kind of financial precision that can’t be beaten at tax time.
What Is Double-Entry Accounting?
FreshBooks double-entry accounting is a suite of new tools and reports to help you make more informed business decisions based on your actual data.
How Does Double-Entry Accounting Work?
Double-entry accounting allows you to understand exactly how much money you’re making versus spending. For example, if you buy a computer, you’ve both spent money and gained a computer. Double-entry accounting tracks both sides of the transaction so that your books balance out.
How Can Double-Entry Accounting Benefit My Business?
With a more thorough breakdown of your financial activity, FreshBooks double-entry accounting gives you a complete picture of where your business stands. This allows you to confidently make more informed decisions like: Setting aside enough money for tax time, hiring a new employee, or making a big-ticket purchase.
Who Is Double-Entry Accounting For?
FreshBooks double-entry accounting is for anyone who wants to know:
- Where your money is being spent
- Where you can find savings
- How your business is performing
- And how to forecast the health of your business.
And if you’re a FreshBooks Plus or Premium customer, you automatically have access to it!
What Are the New Double-Entry Accounting Features?
- Cost of Goods Sold (COGS): Associate expenses with the costs required to deliver your service to clients.
- Other Income: Record and track the income you receive outside of your invoices in FreshBooks, so all your income is in one place.
- General Ledger: A complete record of all your company’s financial transactions.
- Trial Balance: A statement of all the debit and credit balances in your chart of accounts.
- Chart of Accounts: A list of all accounts that help you categorize the transactions of your business.
- Accountant Access: A personalized login for your accountant for easy collaboration and data sharing.
- Bank Reconciliation: A place to create additional entries, expenses or payments that occur outside of FreshBooks.
- Balance Sheet: A full aggregate record of your business’s finances—including assets, equity and liability.
Need Help with Double-Entry Accounting?
There’s a lot to dive into with industry-standard double-entry accounting. If you need any help, reach out here.
This post was updated in March 2021.