Bookkeeping

Ensuring the accuracy of a company’s reports is the responsibility of its company’s financial team, and having a skilled team can minimize these errors. A company’s “uses” of capital (i.e. the purchase of its assets) should be equivalent to its “sources” of capital (i.e. debt, equity). As a result of this transaction, the asset (the bank) and the liability (the bank loan) both increased by $30,000. The company must analyze… Read More »Accounting Equation Overview, Formula, and Examples

In this article, we will be explaining the declining balance depreciation method and provide an example so that you can clearly understand how it works. Unlike other depreciation methods, the salvage value is not deducted from the cost of the asset under this method. The accelerated depreciation rate is applied to the book value (i.e., undepreciated cost) of the asset at the beginning of the period. The continuous charge reduces… Read More »Declining Balance Method of Depreciation Examples

If a corporation issues shares with a purchase price that exceeds the par value or stated value of the shares, the excess amount will be reported in the share premium account. In this case, the share capital account will increase by $1,000,000 while the share premium account will increase by $ 4,000,000. The Share Capital account, also known as Capital Stock, represents the investments made by the shareholders in a… Read More »Statement of Financial Position Definition Format & Examples

Their innovative number system, using just seven letters, revolutionized counting and Accounting Security still influences our world today. From marking Super Bowl championships to adorning clock faces, Roman numerals continue to add a touch of classical elegance to our modern lives. This would have produced the positional system seen in Roman numbering. Share this Article However, there has been a growing tendency to use K as the symbol for thousands… Read More »MMXIX Roman Numerals How to Write MMXIX in Numbers?

When reported on financial statements, investments in these types of liquid accounts are often combined with cash and represent a company’s total holding of money and liquid investments. However, if the cash flow out of the country is restricted, the cash is treated in the accounts as restricted and reported separately. This is different from the short-term assets included in cash and cash equivalents, whose value doesn’t tend to vary… Read More »Cash Equivalents: Finance and Valuation Guide with Examples

The Direct Write-Off Method is a straightforward approach used to account for bad debt expenses. Under this method, businesses record bad debts as an expense only when specific accounts are identified as uncollectible. It involves directly writing off the receivable by debiting the bad debt expense account and crediting the accounts receivable account. This clarity allows for an immediate reflection of financial loss on the income statement. It reduces accounts… Read More »How the Allowance for Doubtful Accounts Affects the Balance Sheet and Income Statement

Partial factoring occurs when a business decides to factor only a portion of its total accounts receivable. This can be useful for managing cash flow while maintaining some control over its receivables. Since the factor assumes the risk of non-payment in non-recourse factoring, no additional entries are needed to recognize liabilities related to the receivables. With non-recourse factoring, there are still some risks involved when the business sells its receivables.… Read More »Accounting for Factoring: Principles, Impacts, and Techniques

Training and skill development for direct labor is not a one-time event but a continuous process that adapts to the changing demands of the industry. It’s a strategic approach that benefits all stakeholders involved and ultimately contributes to the overall success of the product cost management. From the perspective of a floor manager, labor efficiency is often scrutinized through the lens of time studies and work sampling. As an experienced… Read More »Direct Labor vs Indirect Labor Costs: What Is the Difference?

This will require examining your past budgets, current assets and liabilities, cash flow, and fundraising performance. Ultimately, remember that your budget should categorize revenue by different funding sources and your expenses by program vs. overhead costs. According to the National Council of Nonprofits, about 8% of 501(c)(3) organizations manage budgets of over $1 million per year. However, most nonprofits are community-based and work with smaller budgets of less than $500,000… Read More »5 Steps to a Successful Nonprofit Budget Template

Bookkeeping services help ensure that these deductions are properly recorded and claimed, minimizing tax obligations. This results in significant savings that directly contribute to higher profit margins. Accurate tax filing also prevents penalties and fines that could eat into profits. Integration with QuickBooks, ensuring seamless synchronization of project costs with accounting records. Budgeting and job costing tools to manage material, labor, and subcontractor costs. Comprehensive project management tools that link… Read More »Best Construction Accounting Software 2024