Category : Bookkeeping

When the writing is illegible, or the signature isn’t contained within the allotted area, the bank could refuse the check. You can save yourself the hassle of having to write a new check, by taking the time to write information clearly the first time. Whoever is listed as the payee on the front of the check, is the only person authorized to sign it. Therefore, it’s crucial that the payer gets this information correct, when they’re filling out the check. […]

Annex B provides a guide to the impact assessments set out in tax information and impact notes. Structuring multiple businesses can be complex from a tax and legal standpoint. It’s essential to get guidance from professionals who can help you understand your options and how they will impact you and your companies. Some potential drawbacks to operating as an LLC are that it cannot issue stock to raise capital, and it may not have as many tax deductions as a […]

There is a sense that all debt ratio analysis must be done on a company-by-company basis. Balancing the dual risks of debt—credit risk and opportunity cost—is something that all companies must do. A variation on the formula is to subtract intangible assets (such as goodwill) from the denominator, to focus on the tangible assets that were more likely acquired with debt. This approach works well when a business has engaged in a large number of acquisitions, and so has a […]

We believe everyone should be able to make financial decisions with confidence. Expenses are all the money that is spent to run the company that is not specifically related to a product or service sold. An example of an expense account is Salaries and Wages or Selling and Administrative expenses. Certifications aren’t necessary to become a bookkeeper but can signal to employers that you have the training and knowledge to meet industry standards. After you have a couple of years […]

QuickBooks Online (QBO) is a pivotal tool reshaping the financial management process for businesses. This cloud-based accounting solution goes beyond traditional methods, providing a sophisticated platform to navigate the intricacies of fiscal responsibilities. In this guide, we’ll get into the nitty-gritty of QuickBooks Online, helping you understand the ins and outs of bill payments. It doesn’t matter if you’re a seasoned entrepreneur or new at this; learning this tool can save you time and energy, allowing you to focus on […]

As a result, this method could hamper understanding a business’s performance when reviewing its financial statements. The more common accrued revenue and expenses are, the bigger this effect can be. The purpose of accruals is to ensure that a company’s financial statements accurately reflect its true financial position. Creditors send invoices or bills, which are documented by the receiving company’s AP department. The department then issues the payment for the total amount by the due date. Paying off these expenses […]

Margin analysis is one of the most fundamental and essential techniques in managerial accounting. It includes the calculation of the breakeven point that determines the optimal sales mix for the company’s products. Constraint analysis helps companies run more smoothly and efficiently by identifying errors in the production of goods and services. A lot of these issues could be alleviated by recompiling parts of the text into an LMS learning tool (such as a Moodle Book), or webpage. The information gathered […]

Content Reversing EntriesExplained with Advantages & Disadvantages What Is a Negative Balance in an Expense Account? Registering custom path converters¶ Nested arguments¶ After the financial statements are prepared, the closing entries will transfer the balance in the account Temp Service Expense to an owner’s/stockholders’ equity account. As a result, the account Temp Service Expense will begin January with a zero balance. Once the reversing entry is made, you can simply record the payment entry just like any other payment entry. […]

Content Preparing a Statement of Retained Earnings Real Company Example: Coca-Cola Retained Earnings Calculation Terms Similar to the Statement of Retained Earnings Find your net income (or loss) for the current period Ready to calculate your retained earnings? What about working capital and stockholder’s equity? Also, a company that is not using its retained earnings effectively have an increased likelihood of taking on additional debt or issuing new equity shares to finance growth. In the next accounting cycle, the RE […]

Content Types of trial balance What is the difference between a trial balance and a balance sheet? Week 4: Preparing the trial balance and the balance sheet What is a Trial Balance? 6 Prepare a Trial Balance The journal entry process is the initial recording of these transactions to the general journal which are later posted to the general ledger. The general journal is the book of original entries and recording transactions accurately is important as this information is passed […]