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3 Blogging Trends to Get a Jump on Before 2018

3-Blogging-Trends-to-Get-a-Jump-on-Before-2018

According to the latest statistics, there are millions of blog posts published every single day.

It’s 7 a.m., and this live counter already shows over 1.5 million posts created today.

In today’s fast-paced marketing world, posting subpar content isn’t good enough.

You can’t expect to grow your business through content marketing if you’re posting mediocre content.

It just won’t happen. Not when millions of posts are published every day.

Not when thousands of other bloggers are spending hours upon hours writing each post.

In fact, according to Orbit Media’s latest report, it would take the average blogger nine hours and 45 minutes to write a 3,000-word blog post.

If you publish a few posts a week, blogging becomes a full-time job.

And I’m guessing it’s not the only thing you have on your to-do list.

But blogging is critical to online marketing.

On average, buyers tend to read between three and five pieces of content before engaging with a sales rep or starting the buying process.

So, if you’re hoping to generate more sales, you need to be producing more content.

Blogging is crucial for bringing in cheaper inbound leads at a higher rate.

It’s no secret that blogging can have a huge impact on business.

Back when I only blogged a few times each month, my inbound traffic wasn’t great.

Now I blog multiple times every day, and my traffic has never been better.

Thankfully, there are a few proven ways to stand out amongst the crowd of blog posts.

Here are three blogging trends to get a jump on before 2018.

1. Have a documented strategy

Just like any other business process you have, it helps to have a written strategy in order to speed things up and produce good results every time.

The whole point of developing processes and company documents is to have a smooth-running business, right?

Just look at your company mission statement or any internal documents you might have on how to do things like outreach, social posts, and emails.

Chances are you have documented processes or ways to complete tasks in an efficient, standardized way.

But only 37 percent of B2B marketers have a documented content strategy.

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So why would you not have a documented process when HubSpot data tells us that marketers who prioritize blogging are 13 times more likely to see a positive return on investment?

If you’re not following a documented strategy, you’re likely missing the mark. Sporadic, unpredictable posting can confuse your readers and convince them never to return.

You must hit certain benchmarks if you want to succeed at blogging.

And that current mark is over 16 blog posts every single month.

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That means that, if you don’t currently have a documented strategy, you’re probably not hitting 16 or more blog posts every single month.

And if traffic, leads, and sales are your goal — as they should be — you need to be hitting that number.

Both B2B and B2C companies can benefit from blogging many times each month.

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On top of that, it’s not only traffic that you can expect from blogging.

You can also generate a dramatic increase in leads, depending upon how often you blog.

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So, if you find yourself posting one to four times per month, or even between five and 10 times, you aren’t doing enough.

You need to nail down a documented strategy that will guarantee you 16 or more posts each month.

If you don’t, you’re missing out on potentially increasing your leads by four times, according to the graph above.

So, what’s the first step?

First, generate topic ideas.

To get started with a documented blogging strategy, you need to plan topic ideas.

I do this every single month to prepare for the month’s content schedule.

If I’m feeling light on ideas, I simply fire up HubSpot’s Blog Ideas Generator.

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If I can’t think of new angles or topics, I type my target keywords into the “Noun 1” column and hit “Give Me Blog Ideas!”

For example, next month I want to write about link building.

So I get blog ideas for it:

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Pretty cool, right? Now I have a few good topics to cover and ways to create an angle that is both interesting and worthwhile to read.

And the generator did all the work for me.

Don’t like the ideas? Simply hit “Try Again” and it will produce five more topics.

After you’ve built up a list of 16 or more topics for the upcoming month, it’s time to plan them.

Schedule each post.

Open your Google Calendar and start to add the topics.

Space them evenly throughout the month or try to get several done one day per week.

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The goal here, again, is to create a documented process.

You want to put concrete dates on each and every blog post, making sure it gets done.

If you don’t schedule a date for each one, they won’t get done. Trust me.

Before I started a documented content process and mapped out every post on my calendar, I could never get 16 or more done in a month.

I would get bogged down by emails, client calls, and grunt work.

But a process points to prioritization.

If it’s a priority, you will focus on it more.

So now I use this simple documentation process to write more than two posts every day, and as a result, it gets done.

2. Long-form content is key

Simply documenting your posts and writing a quick 1,000 words isn’t enough, though.

You can’t afford to be pumping out content that you aren’t proud of.

Chances are, if you’re not happy with your content, prospective leads won’t be, either.

This year, 47 percent of B2B content marketers said that a contributing factor to their decreased success was related to content creation.

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It’s no wonder that many content creators and bloggers are struggling to keep people engaged.

It’s hard to keep them reading and also keep them from bouncing.

And the content length is a big factor.

Most bloggers are writing posts with an average length of just over 1,000 words.

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And 1,000 words is nowhere near long enough to structure an actionable blog post:

  • Intro
  • Why this topic is important
  • Explain tip #1
  • Discuss how to implement it
  • Repeat for multiple tips

You simply can’t fit actionable data and how-tos into 1,000 words.

That’s why all my blog posts are over 2,500 words, and my long-form guides reach 30,000 words.

The data agrees, too.

Longer, more in-depth blog posts generate nine times as many leads as shorter posts.

Just take a look at the top-ranking content in Google according to a Backlinko study.

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Even the 10th-ranked position has a word count over 1,700. That means you can’t afford to be writing 1,000-word blog posts anymore.

It just won’t drive traffic and leads like a long-form piece will.

So how do you start to create and integrate more long-form content?

Start by condensing posts.

“Wait, Neil. Didn’t you just say to make them longer?”

Here’s what I mean by that.

Let’s say you wrote four posts about link building over the past six months. Each post covered a different tactic or approach to link building.

Simply take those four posts and combine them into a single, listicle-style post.

Condense them to make them longer.

repurpose content all the time on QuickSprout.

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Pro tip: Make sure to refresh old content with new data and tips rather than simply copying and pasting.

Now you’ve got a piece of content that’s likely over 2,000 words in length without doing any extra work.

Next, add step-by-step instructions.

Take a moment to ask yourself:

“Why are people clicking on my blog post?”

Your answer will likely be something like:

“To understand new tactics or ways to improve __.”

So the next logical step would be explaining how to do something, not just that something exists.

People are coming to your blog to fix a problem they have, so show them how to fix it.

Don’t just tell them that building backlinks is a good SEO tip without showing them how to build those backlinks.

I do this all the time in my blog posts.

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Add actionable step-by-step instructions by walking people through the use of a technology or process.

You can structure it like this:

  • First, do X.
  • Then, click X.
  • Click X and then X.
  • Finally, do X, and you’re ready to go.

The goal here is to show every step in the process so that anyone can easily replicate it.

3. Integrate video

It’s no secret that online video consumption has exploded.

YouTube now has 1.5-billion users who log in every month to watch content.

And guess how much content they consume on average every time?

Over one hour every single day.

That’s a lot of video watching, and it should make marketers sit up and take notice.

According to HubSpot’s 2017 State of Inbound report, tons of marketers are starting to take advantage of the platform (and video in general):

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So, how does this relate to blogging?

Well, adding video content to your blog is one of the best ways to get better results.

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And I’ve started to implement that strategy on my content, too.

I built my YouTube channel to drive more traffic to my blog.

I also use videos in every single post to drive more engagement and keep people around longer.

It’s become a go-to strategy of mine and it has helped drive sales 49 percent faster.

So, how can you do this for your blog?

Let’s jump in. Here’s how to start creating videos.

Step 1. Find popular existing content.

The first step is to find your most popular blog content.

What content has gone viral? What content got the most shares, traffic, and comments?

The goal here is to find content that has already resonated with people.

To get started, open Google Analytics and navigate to “All Pages” under the “Behavior” section.

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Next, sort the report by a specified date range. I recommend looking at the last 12 months of your data.

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This way, you’ll have an accurate depiction of your most popular content.

Then, scroll down and look at your most popular pages.

You can look at the Pageviews and Unique Pageviews to see which content has driven the most traffic.

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Now, simply go to those blogs posts and proceed to the next step.

Step 2. Examine subheads to structure your video.

Here’s how I structure my videos.

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Notice how they’re in the form of actionable steps?

To outline your videos like this, look at your most popular content (which you identified in the first step) and examine the subheads.

For example, I can scan my recent post about increasing CTR on AdWords and start to identify tips for a potential video.

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Perfect, that’s my first tip.

Keep scanning and identifying steps that would be easy to explain in a video.

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Then, simply take those tips and use them as an outline for your new video.

Once you’ve got your video content ready, it’s time to create it.

Step 3. Create the video

Not everyone wants to put themselves on camera like I do.

And that’s fine. You don’t have to create videos featuring yourself if you don’t want to, or if you simply don’t have the equipment to do so.

Instead, you can create animated videos or slideshow-style videos that will still increase engagement.

For example, you can browse a site like Fiverr. Simply conduct a search on Fiverr for something like “explainer video.”

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This should turn up hundreds of results for low-cost options.

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You can get amazing videos for your top-performing blog posts by having a contractor on Fiverr produce them.

They have tons of examples and choices for you to structure your video. It’s a great tool that will allow you to add video to your blog without spending much time or money.

If you want to create them on your own, you can use a site like Moovly or Biteable.

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To get started, you can use Biteable for free.

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Simply hit “Get Started” to create a free account.

You can choose from multiple video template styles.

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One of my favorite templates to use is “Business Explainer.”

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Click “Select” to start using the template.

Now you can start adding all the steps you gathered from the articles in the previous two steps.

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Simply type your text for each video segment and save it. It will automatically update and your video will be created in a matter of minutes.

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Creating videos doesn’t require a degree in production. You don’t have to be tech-savvy to make an amazing video to aid in your blog’s success.

Just use tools that allow you to streamline the process, then plug in the data you’ve collected.

Lastly, add these videos to your new blog posts where they seem appropriate.

Conclusion

Let me hit you with a few final, staggering facts.

U.S. web users spend three times more on blogs than they do reading emails. And there are 346 million blog readers worldwide.

Today, there are 31 percent more bloggers than there were just three years ago.

Blogging is here to stay, people.

And as we head into the last bit of 2017, it’s time to get on board with blogging for 2018.

We know that there are currently millions of blog posts being created and published on a daily basis.

So that means you should be focusing on two things: blogging and making sure your content stands out.

But how can you outrank the competition when there are millions of people posting content daily?

It’s tough. And it won’t happen overnight.

And it’s not as simple as quickly putting together and posting low-quality content.

Especially not when your competition is spending multiple hours writing every day.

And sometimes they are writing multiple posts every day.

Remember, according to Orbit Media’s 2016 report, it would take the average blogger nearly 10 hours to write a 3,000-word post.

But the truth is this: You need blogging to grow your business.

B2B buyers will read between three and five blog posts before making contact with a sales rep or making a purchase decision.

Once you’ve built your blog to 52 or more posts, your traffic will jump by 77 percent.

So how do you write better content and jump on the right trends that can help you surpass the competition?

First, create a documented strategy. If you want to compete in 2018’s crowded landscape, you need to document everything.

Next, start improving your blog by writing long-form content.

Long-form content is the key to success, and every study proves that the top content is long-form.

Create longer content by combining old posts and including step-by-step instructions.

Lastly, integrate video. The use of video is on the rise, and it’s proven to increase blog post engagement.

Implement some of these blogging tactics and trends for 2018 to blow past the competition.

What are your top blogging tactics and trends to jump on in 2018?

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COMPREHENSIVE GUIDE TO VIRTUAL ASSISTANT SALARIES IN THE PHILIPPINES

5

How Much Does the Average Virtual Assistant Earn?

A Virtual Assistant’s salary ranges from $300 to $1000 a month depending on their skills. A programmer will obviously require a higher salary as compared to a data entry specialist, which is almost the same case with office-based jobs. Below is a gist of VA salaries. You can find a more complete list here.

Average Monthly Salary

vs

OFFICE WORKERS

VIRTUAL ASSISTANT

  • Accounting Clerk – $180
  • Nurses – $200
  • BPO Entry Level – $250
  • Customer Support Agents – $250
  • Autocad Operators – $302
  • Teacher – $420
  • Accountant – $530
  • Civil Engineer – $550
  • Management Accountant – $1,395
  • Project Manager – $1,400
  • Accountant – $470 ($300-$2000)
  • Transcriptionist – $360 ($300-$1600)
  • Link Builder – $420 ($300-$1500)
  • Customer Support – $460 ($400-$2000)
  • Graphic Designer- $450 ($400-$1800)
  • Artist – $400 ($330-$1800)
  • Virtual Assistant – $400 ($300-$1800)
  • SEO Specialist – $500 ($300-$1700)
  • Copywriter – $500 ($400-$2000)
  • Web Designer / Webmaster – $500 ($350-$2000)
  • Video Editor – $550 ($300-$2000)
  • Software/Web/App Programmer -$800 ($590-$1600)

Minimum Wage for
Major Cities

For office based jobs in the Philippines, there are other factors in play such as the tendency to base salary rates on the government mandated minimum salary and the progressiveness on the industry they are in. The sad part is, for office-based jobs, majority of the rates really are based on the minimum salary requirement.

min-wage-cities

Average VA Salaries
Across the World

When you compare average salaries in the Philippines with other countries, you begin to see why the Philippines is the fastest growing outsourcing market. When you combine the talent level in the Philippines with the average salaries, the Philippines becomes downright compelling.

avg-va-salary-countries

How much does the average Filipino have to spend?

To make it easier for you to formulate a rating of your own for your future VA’s, or if a raise is long overdue, we also have a chart on the cost of living in the Philippines. This includes the utilities that they need to fully function in the virtual assistant world.

vs

OFFICE WORKERS

VIRTUAL ASSISTANT

RECURRING

  • Transportation: $36 – $150*minimum is 1 round trip jeepney ride. It usually takes a jeepney and MRT for most people
  • Rent: $150 – $300
  • Electricity: $54 – $150
  • Food: $250 – $460

Total Monthly Expenses

$490 – $1060

RECURRING

  • Transportation: $0
  • Internet Connection: $40 – $100
  • Rent: $150 – $300
  • Electricity: $54 – $150
  • Food: $100 – $180

ONE TIME COSTS

  • Computer: $360 – $1000*computers and laptops replaced every 3 years
  • Laptop: $500 – $1200*laptops more expensive in the Phils due to customs duties

Total Monthly Expenses

$344 – $568

Again, the chart only includes the basic utilities. Please keep in mind that there are other costs one requires in order to live, like clothes, mobile devices, and anything that allows them to go about their actual lives.

How old and experienced are these virtual assistants?

In the Philippines, a college degree is a prerequisite in order to get a job. That’s why majority of Virtual Assistants are college educated.

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What are the optional benefits that employers can pay for?

If you’re like me, you want to give a few extras for your loyal employees. There are some benefits such as health insurance (PhilHealth in the Philippines) or SSS (like Social Security in the USA). If you want to provide this benefit to your workers here’s how much it cost:

SALARY RANGE PHILHEALTH SSS
$200 – $249 $5.78 $27.54
$250 – $299 $7.22 $32.83
$300 – $349 $8.67 $33.89
$350 – $399 $9.63 $33.89
$400 – $449 $11.07 $33.89
$450 – $499 $12.03 $33.89
$500 – $549 $13.48 $33.89
$550 – $599 $14.92 $33.89
$600 – $649 $15.89 $33.89
$650 – $699 $16.85 $33.89
$700 – $749 $16.85 $33.89
$750 – $800 $16.85 $33.89

Source: http://www.philhealth.gov.ph/partners/employers/contri_tbl.html

As you can see, with Filipino workers, you don’t have to break the bank to give these highly skilled workers a living wage. If you just look at their salary in terms of numbers, yeah they do look insignificant compared to ours. But if you’re that Filipino VA, that $500 or $600 per month will get you more than most Filipino workers get. That amount gets them better meals for their families, better education for their kids, better lives overall. It’s a small amount to you but a big blessing for them.

So the next time someone accuses you of exploiting workers because you outsource, show them these numbers. Ask them what exploitation looks like and show them pictures of your VA being able to send their kids to private school and get iPhones for themselves. If this is exploitation, then giving them a “fair” wage would be winning the lottery.

Have You Talked To Your Virtual Assistants About Rogue One Yet?

Do you know what your virtual assistants do for fun?

Have you asked them about their interests?

Did you know that they paint, cook really well, or watch the same series and movies as you? A little something my friend bought for me from Japan. I still need to have it framed.

You are going to find out the most interesting things about your VA if you asked. They’ll be willing to share.

This is a habit that John (OnlineJobs.ph owner) has picked up over the years of working with us. He either asks us the fun stuff we’re up to recently, or we just openly share the information with him anyway.

I must admit, there was a time where it brought out paranoia. There was a time when I thought, oh my god, did I do something wrong? Why does he want to find out. Later on, I realized he just wanted to. He wanted to learn about his VA and the stuff I was interested in, and if it was something he found cool too, we would talk about it, and we would show off all the fun things we have about it.

dalek r2d2

Last week, John asked me about something I mentioned on my report. He asked me what a Dalek was. Well, the Daleks are only the most awesome and saddest villains of all time John!!! But really, according to Wiki, “the Daleks were engineered by the scientist Davros during the final years of a thousand-year war between his people, the Kaleds, and their enemies the Thals. With some Kaleds already badly mutated and damaged by nuclear war, Davros genetically modified the Kaleds and integrated them with a tank-like, robotic shell, removing their every emotion apart from hate. His creations soon came to view themselves as the supreme race in the universe, intent on purging the universe of all non-Dalek life.”

Watch the best Dalek moments here:

I’ve been crazy over this series for a while. I’ve been crazy over a lot of movies and series actually, and I like to buy stuff that remind me of these interests. Lately, I bought some Metal Works 3D Models and posted it on instagram. It’s a great hobby to start. You basically buy something that looks like this:

51odk47codL

And it transforms into this:

I made this all by myself. :)

When John saw it, he reacted the way no typical boss reacts. “It looks great. You should write about it.” He said. So here I am, playing with two of my toys, trying to get some inspiration for work.

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Prime Minister: Does it surprise you to know that Daleks have a concept of beauty?
The Doctor: I thought you’d run out of ways to make me sick. But hello again. You think hatred is beautiful?

Prime Minister: Perhaps that is why we have never been able to kill you.
R2D2: Beeeeeepp beeeeep dooot, wit wit doooooot!

It Doesn’t Have to Be an Awkward 1 on 1

You don’t have to schedule a call and start an interview. Go back to basics which is, your VA’s are humans. You can you know, talk to them. To make it easier for you, the new Star Wars movie Rogue One is showing. You’ll be surprised at how many Filipinos are crazy about Star Wars. In fact, we have Star Wars Fandoms everywhere.

If you think you have absolutely nothing in common because of the geographic differences, think again. I’m crazy about both Doctor Who and Star Wars, British and American legacies. And there are so many movies and series I watch, just like the other virtual assistants I know. So yeah, there’s bound to be something you can relate to. If not movies and series, then maybe the latest gadgets or food!

It’s as simple as that, start by asking about the newest show on air, or the new movie you want to watch. Who knows, you might be interested in the same things. You might get a better perception of how they do things, of what they are passionate about, of what makes them tick.

Why Do You Need to Talk to Your VA?

Talking with your virtual assistant doesn’t just make a better working relationship. You have to admit, there’s a point to the saying “Out of sight, out of mind.” Constant effort is necessary to remind yourself that hey, this is a real person. In return, your virtual assistant will also be reminded that I’m not just working for this email address or this business. There’s a person behind this business, and that person has a family, has friends, and bills he also has to pay for. He’s a real person like me. It reminds your staff, just like I am reminded, I don’t just want a business to succeed, I want this person, my boss to succeed.

 

You can register in the link here to sign up.

https://www.onlinejobs.ph/jobseekers/info/630796

 

 

TWITCHCON 2018 by FORTNITE

3Fortnite Fans,

Another big Fortnite event is on the horizon –  tell your friends using #FortniteTwitchcon!

Where are we dropping?

San Jose Convention Center! We’ll be landing at Twitchton 2018 on Friday, October 26 and we’re bringing plenty of fun activities for solos or squads. Find us inside the San Jose McEnery Convention Center in the “Fortnite Hall” or tune-in to the conclusion of the Fall Skirmish tournament series, live at Twitchcon!

FALL SKIRMISH FINALS & STREAM-VITATIONAL

There will be two Fortnite competitions hosted at the the convention: a Duos competition open to players that register online, and a Stream-Vitational event for 50 Fortnite Creators and 50 randomly selected TwitchCon attendees. Each event will be broadcasted live on the showfloor. Come by the booth, grab a seat and cheer on your favorite Fortnite players! Did we mention there are free snacks?

BR05_Social_FallSkirmish.jpg

For more information on registration, rules and prizing, visit our official Twitchcon tournament blog here.

Watch the tournament live on:

LAZY LINKS LIVE!

Grab your squad! All kinds of activities await you at Twitchcon. Land a hole-in-one at the Lazy Links mini-golf course to get a full set of Fall Skirmish club pins!

Twitchcon_Pins.jpg

Watch the tournament live, take a photo with your team or stop by for some snacks at the Fortnite Hall. Don’t miss the merch booth where you can grab Fortnite event swag!

The circle is closing… see you in San Jose!

-The Fortnite Team

Bookkeeping 101: A Beginning Tutorial

bookkeeping

Bookkeeping in a business firm is the basis of the firm’s accounting system. Bookkeepers are responsible for recording and classifying the accounting transactions of the business firm and techniques involving recording those transactions.

If you are a small business owner, you either have to set up your own accounting system or you have to hire someone to set it up for you. If you are self-employed and it is a one-person business, you will do it yourself. If you are hiring staff and anticipate a lot of growth, you may hire a controller to handle your financial management and accounting. If your business is going to grow but you anticipate slow growth, you may simply hire an accountant or bookkeeper to handle the accounting system.

What Does the Accountant Do?

Where the bookkeeper records and classifies the financial transactions of the company, the accountant takes the next steps and analyzes, reviews, reports, and interprets financial information for the company.

What Does a Controller Do?

The controller is actually a company’s chief accounting officer. He/she is responsible for setting up and maintaining the company’s accounting system. The controller is responsible for financial and managerial accounting; in other words, responding to the firm’s accounting data in an appropriate and responsible manner. A controller is usually hired as a business gets larger.

Bookkeeping With and Without a Computer Program

This tutorial on bookkeeping teaches you basic bookkeeping without using a computer program. Why do you need to know that since there are so many computer programs out there you can use? Have you ever heard the saying, “Garbage in, garbage out?” You have to understand the basic bookkeeping behind what you enter into the computer program in order to enter in the correct information. A later tutorial will deal with using a computer program to handle bookkeeping for your business organization.

    • 01

       Should you use Single or Double Entry Bookkeeping?

      accounting

      Single-Entry bookkeeping is much like keeping your check register. You record transactions as you pay bills and make deposits into your company account. This works only if yours is a small company with a low volume of transactions.

      If your company is of any size and complexity, you will want to set up a double-entry bookkeeping system. Two entries, at least, are made for each transaction. A debit is made to one account and a credit is made to another accounting. That is the key to double-entry accounting.

    • 02

       Should you use Cash or Accrual Accounting?

      One of the first decisions you have to make when setting up your bookkeeping system is whether or not to use a cash or accrual accounting system. If you are operating a small, one-person business from home or even a larger consulting practice from a one-person office, you might want to stick with cash accounting. If you use cash accounting, you record your transaction when cash actually changes hands. Cash can be anything from actual money to electronic funds transfer. Sometimes firms start their business using cash accounting and switch to accrual accounting as they grow.

      If you are going to offer your customers credit or if you are going to request credit from your suppliers, then you have to use an accrual accounting system. Using accrual accounting, you record purchases or sales immediately, even if the cash doesn’t change hands until a later time, such as in the case of Accounts Payable or Accounts Receivable.

    • 03

       The Basics – Understanding Assets, Liabilities, and Equity

      Before you set up your bookkeeping system, you have to understand the firm’s basic accounts – assets, liabilities, and equity. Assets are those things the company owns such as its inventory and accounts receivables. Liabilities are those things the company owes such as what they owe to their suppliers (accounts payable), bank and business loans, mortgages, and any other debt on the books. Equity is the ownership the business owner and any investors have in the firm.

      Balancing the Books

      To balance your books, you have to keep careful track of these items and be sure the transactions that deal with assets, liabilities, and equity are recorded correctly and in the right place. There is a key formula you can use to make sure your books always balance. That formula is called the accounting equation:

      Assets = Liabilities + Equity

      The accounting equation means that everything the business owns (assets) is balanced against claims against the business (liabilities and equity). Liabilities are claims based on what you owe vendors and lenders. Owners of the business have claims against the remaining assets (equity).

      Initial Bookkeeping Terms Related to the Accounting Equation

      Let’s take a closer look at assets, liabilities, and equity so you will have a complete understanding of what comprises each one.

      • Assets: If you look you look at the format of a balance sheet, you will see the asset, liability, and equity accounts. Asset accounts usually start with the cash account and the marketable securities account. Then, inventory accounts receivable, and fixed assets such as land, buildings, and plant and equipment are listed. Those are tangible assets. You can actually touch them. Firms also have intangible assets such as customer goodwill.
      • Liabilities: The liability accounts on a balance sheet include both current and long-term liabilities. Current liabilities are usually accounts payable and accruals. Accounts payable are usually what the business owes to its suppliers, credit cards, and bank loans. Accruals will consist of taxes owed including sales tax owed and federal, state, social security, and Medicare tax on the employees which are generally paid quarterly.
      • Equity: The equity accounts include all the claims the owners have against the company. Clearly, the business owner has an investment, and it may be the only investment in the firm. If the firm has taken on other investment, that is considered here as well.
  • 04

     Income Statement Basics – Revenue, Expenses, Costs

    If you look at the balance sheet in Step 4, you learn about assets, liabilities, and equity. If you move on to the income statement, you learn about revenue, expenses, and costs.

    Revenue is all the income a business receives in selling its products or services. Costs, also called cost of goods sold, is all the money a business spends to buy or manufacture the goods or services it sells to its customers. The Purchases account tracks goods purchased. Expenses are all the money that is spent to run the company that is not specifically related to a product or service being sold. An example of an expense account is Salaries and Wages.

    A bookkeeper is responsible for identifying the accounts in which transactions should be recorded. For example, if the business makes a cash sale to a customer and your business uses double-entry bookkeeping, you would record the cash received in the asset account called Cash and the sale would be recorded in the revenue account called Sales. Here is another example of a bookkeeping entry for a cash sale. This one throws in another variable – what the bookkeeper has to do when sales tax is involved.

 

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