Ledger Essentials

The senior bookkeeper who always has time for your question.

Journal entries, reconciliations, month-end close — and knowing when it’s a CPA’s call. Answered in plain language, with the entry written out for you.

$2 starter usage · no card needed

Ledger Essentials

How do I record a $6,000 12-month insurance premium paid up front?

It’s an asset until you use it. Book the payment, then expense it over the year:

Dr Prepaid Insurance6,000Cr Cash6,000

Then each month, move 1/12 to expense:

Dr Insurance Expense500Cr Prepaid Insurance500

Prepaid Insurance is an asset — you’ve paid for coverage you haven’t used yet.

Everything a bookkeeper reaches for

Ask in plain words. Get the right treatment, the entry, and the reasoning.

Journal entries

Record any transaction the right way — with the entry written out.

Bank & card reconciliation

Match, find the difference, and book the adjustments.

Month-end & year-end close

A clear checklist and the closing entries that go with it.

Sales tax

Collect it, track it as a liability, and remit it correctly.

Payroll entries

Gross-to-net, employer taxes, and the liabilities behind them.

AR / AP & 1099s

Aging, bad debt, vendor credits, and who gets a 1099.

Book-to-tax

How your books feed Schedule M-1 and the return.

QuickBooks, Xero & spreadsheets

Practical, software-aware help — spreadsheets included.

See it in action

Real bookkeeping questions, answered in plain language — with the entry, the visual, or the honest “that’s your CPA’s call.”

Ledger Essentials

Show me a T-account for Cash: opening 5,000, received 2,000 from a customer, paid 1,500 rent.

Debits on the left, credits on the right — foot each side and net them:

Cash
Debit
5,000
2,000
Credit
1,500
 
Balance 5,500 Dr

Cash has a normal debit balance, so the 5,500 lands on the debit side.

Ledger Essentials

My bank reconciliation is off by $43. What do I do?

Don’t force an adjustment — that just hides the error. An off-by amount like this almost always means a previously reconciled transaction was edited or deleted.

Run the Reconciliation Discrepancy report to see exactly what changed, then fix that transaction — don’t type over the beginning balance.

Ledger Essentials

What's the journal entry for a $4,000 gross payroll run?

Here’s the employee-side entry (employer taxes are a separate one):

Dr Wages Expense4,000Cr Federal W/H Payable480Cr FICA Payable306Cr Cash (net pay)3,214

FICA is 7.65% of gross; net pay is what actually leaves the bank.

Ledger Essentials

Should we record a valuation allowance against our NOLs?

That one’s an entity-specific judgment call — your CPA’s, not mine. It hinges on whether the NOLs are “more likely than not” to be used.

What I can do is get your books ready for that call: clean NOL tracking and the deferred-tax accounts set up, so your CPA has what they need.

Built to be trusted with the books

Grounded, not guessing

Answers come from real tax and accounting rules — not a chatbot winging it.

Knows its limits

It tells you plainly when something is a CPA’s call, instead of bluffing.

Tax-firm-grade depth

Built inside a tax practice: cash, accrual, and FRF for SMEs — the world small businesses actually live in.

Simple usage pricing

Subscribe for our best rate, or buy credit packs anytime — no subscription required.

Best rate

Monthly

$20/month

Includes a full month of AI usage at our best rate. Unused included usage expires each cycle.

  • Included monthly usage (subscriber rate)
  • Chat, voice, and statement review
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Credit pack

$10one-time

Prepaid usage that never expires. Works alone or stacked on a subscription.

  • Use for chat, voice, and statement review
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Get the books right.

Your experienced bookkeeping colleague, on call whenever you have a question.

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