The Books Breakdown

In this episode, Jay breaks down Accounts Receivable — the money owed to your business for goods or services already delivered but not yet paid for. Jay explains where AR sits on the Balance Sheet, why it's classified as a current asset, and how a high AR balance can create serious cash flow problems even when business looks good on paper. The episode also covers the AR Aging Report — a key tool for tracking overdue invoices and staying ahead of collection issues.Presented by Cherokee Bookkeeping. Co.

Ever stared at your books and thought — wait, why does this debit go here and the credit go... there?You're not alone.On this episode of The Books Breakdown, we're cutting through the confusion around one of the most misunderstood concepts in small business finance — debits and credits — and the 600-year-old system that holds your entire financial picture together.We'll break it down with real examples, plain language, and a cheat sheet you'll actually remember.No accounting degree required.

Ever wondered why you can't just write off a big equipment purchase all at once? In this episode, we break down two of the most misunderstood concepts in small business accounting — depreciation and accumulated depreciation. Using a simple, real-world example, we explain how depreciation spreads the cost of a long-term asset over its useful life, and how accumulated depreciation tracks the total wear and tear on your balance sheet. We also cover why all of this matters for your taxes, your financial statements, and your long-term business planning. Short, clear, and practical — just the way we like it at Cherokee Bookkeeping Co.