CPB Bookkeeper cheat sheet

Accounting equation: Assets = Liabilities + Equity; every transaction must keep this equation in balance.

Debit rules: debits increase assets and expenses and decrease liabilities, equity, and revenue; credits do the reverse.

Trial balance: total debits must equal total credits; unequal totals point to a posting, transposition, or slide error.

Accrual basis records revenue when earned and expenses when incurred; cash basis records them only when cash moves.

Adjusting entries handle accruals, deferrals, prepaids, and depreciation, and never involve the Cash account.

Closing entries zero out temporary accounts (revenue, expense, withdrawals) into equity at period end.

Bank reconciliation: adjusted bank balance = statement balance + deposits in transit - outstanding checks ± bank errors, and it must equal the adjusted book balance.

Straight-line depreciation = (cost - salvage value) / estimated useful life.

Current ratio = current assets / current liabilities; it measures ability to cover obligations due within one year.

Each chart-of-accounts entry has a type (asset, liability, equity, income, expense) that determines its placement on the Balance Sheet or Profit & Loss.

Products and Services items carry an income account and tax code, so item setup controls how sales and sales tax post.

Undeposited Funds is a holding account for customer payments until a bank deposit is recorded to match the statement.

To finish a reconciliation the difference must be zero: statement ending balance vs. cleared deposits minus cleared payments.

Setting a closing date with a password blocks changes to transactions on or before that date; the Audit Log records who changed what.

A journal entry needs at least two lines with equal total debits and credits and is reserved for adjustments, not routine sales or purchases.

Balance Sheet and Profit & Loss can be run on cash or accrual basis using the report header toggle; the default follows company preferences.

The Sales Tax Liability report shows tax collected and owed by agency for a date range and supports filing and payment.

Net pay = gross pay - employee tax withholdings - employee deductions (benefits, retirement, garnishments).

FICA employee rates: Social Security 6.2% up to the annual wage base; Medicare 1.45% with no cap; the employer matches both.

FUTA: 6.0% on the first $7,000 of each employee's wages, reduced by a credit of up to 5.4% for state tax, for a net 0.6%.

Form 941 is filed quarterly (due April 30, July 31, October 31, January 31); Form 940 is the annual FUTA return due January 31.

Overtime under FLSA = 1.5 x regular rate for hours over 40 in a single workweek, not hours over 8 in a day.

Salaried gross pay per period = annual salary / pay periods (52 weekly, 26 biweekly, 24 semimonthly, 12 monthly).

Employer payroll tax expense = employer FICA + FUTA + SUTA; it is separate from employee withholdings.

Form W-2 reports employee wages and withholdings by January 31; Form 1099-NEC reports $600 or more paid to nonemployees for services.

Worker classification turns on behavioral control, financial control, and type of relationship; misclassification shifts tax liability to the employer.

Plan before drafting: define purpose, audience, and scope, then choose format, tone, and level of detail.

Subject line rule: state the topic plus the required action or deadline so the reader can prioritize the message.

Bad-news sequence: buffer, factual reason, clear decision, courteous close with alternatives.

Active listening cycle: attend, paraphrase, ask clarifying questions, confirm understanding before responding.

Confidentiality rule: client financial and payroll data goes only to authorized parties; never send SSNs or full account numbers unencrypted.

Contemporaneous notes should record date, participants, issue, action taken, and follow-up owner.

Meeting agenda elements: objective, timed items, responsible owner per item, and decisions needed.

Email clarity: one idea per paragraph, plain language, specific closing request; avoid all caps, slang, and ambiguous humor.