Grow While You Learn
Welcome to “Hot Topics” — your space to discover useful tips, insights, and facts about bookkeeping, accounting, and managing your business finances.
HOT TOPICS
Let’s learn, grow, and succeed — together.
Not only do we want to help you grow with our services — we also want to share free advice, helpful information, and practical tips that can support you at the start of your journey, or anytime along the way.
What Is Bookkeeping?
Bookkeeping is the process of recording financial transactions for businesses—it can be single-entry (simple) or double-entry (standard and more accurate)
The double-entry system posts debits and credits for every transaction, keeping books balanced and helping prevent errors or fraud
The Accounting Cycle — 8 Steps
1.Record transactions in journals
2.Post to the general ledger
3.Prepare a trial balance
4.Make adjusting entries
5.Generate financial statements (Income, Balance Sheet, Cash Flow)
6.Close the books
7.Start the new period
8.Review and repeat regularly
This structured cycle helps keep records accurate and reliable
Why Clean Bookkeeping Matters
According to U.S. Bank, 82% of small businesses fail due to poor cash flow understanding, underscoring the importance of accurate bookkeeping
Good bookkeeping supports tax compliance, helps secure funding, and provides insight into business performance
Top 7 Bookkeeping Tips for Small Businesses
1. Separate business and personal accounts—avoid mixing funds to maintain clarity, ease taxes, and enhance professionalism.
2. Track every expense, no matter how small, and save the receipts—helps with budgeting and tax deductions.
3. Automate bookkeeping using software (e.g. QuickBooks Online)—saves time and reduces mistakes.
4. Set a regular schedule (weekly or bi weekly) to log expenses, reconcile statements, and update records.
5. Choose the right accounting method: cash basis (simpler) or accrual basis (more accurate), depending on business complexity.
6. Open a dedicated business bank account and credit card, ideally one that syncs with your accounting software.
7. Consult a professional when needed—especially for taxes, compliance or financial strategy.
Bookkeeping Tools & Software Trends
Popular tools in 2025 include: QuickBooks (most comprehensive), Xero, FreshBooks, Zoho Books, and Wave (free)
For small volume or early-stage businesses, Excel can work as a ledger—enter transactions manually using debit/credit columns to balance entries. But transitioning to software is ideal as you grow
Modern Trends in Accounting
Emerging technologies like AI, Machine Learning, and blockchain are transforming bookkeeping by enabling anomaly detection, automation, and real-time reporting
These tools help increase accuracy, lower costs, and deliver deeper insights.
What is a 1099 and why do I need to give them to my vendors?
A 1099-NEC is a tax form used to report payments made to independent contractors or vendors for services.
If you paid a vendor $600 or more during the year (and they are not an employee or a corporation), you must send them a 1099 by January 31 of the following year.
This form helps the IRS track income and ensures your business stays compliant.
Quick Tip: Not issuing a required 1099 can lead to IRS penalties and headaches during an audit.
Why is it important to get a W-9 from my vendors, and when is the best time to get it?
A W-9 form provides your vendor’s legal name, business type, and taxpayer identification number (TIN).
You need this information to issue a 1099 at the end of the year.
The best time to get a W-9 is before you pay your vendor for the first time — that way you don’t have to chase them down later.
Quick Tip: Always keep W-9 forms in your records; they protect you from IRS compliance issues.
If you like this type of content and want more, we will be uploading, tips, facts, and more in our socials
English 
Spanish