Category: Bookkeeping

For this, depreciation is introduced to take into account a reduction in the price of an asset. The Historical Cost Concept needs support of two other concepts for practical purposes, viz. (i) the Money Accounts Payable Management Measurement Concept (already discussed above), (ii) the Balance Sheet Equation Concept. Revenue recognition principle These industry-specific practices ensure…

This differs from an account payable, where there is no promissory note, nor is there an interest rate to be paid (though a penalty may be assessed if payment is made after a designated due date). Capital accounts – capital accounts of all type of businesses are permanent accounts. This includes owner’s capital account in…

From the field, techs can easily generate invoices or purchase orders and export them directly to QuickBooks. Eliminating the need to input accounting data by hand or enter it twice ensures financials are accurate, up-to-date, and accessible in the cloud. Keep personal and business finances separate from each other to avoid messy accounting hvac accounting…

July 1 marked the start of the new fiscal year and the state’s gasoline excise tax ticked up from 59.6 cents to 61.2 cents, an increase of 1.6 cents per gallon. This means that the income earned from commissions is subject to federal and state income taxes. For those who earn commissions as a significant…

Also, mistakes in liquidity order can lead to false financial conclusions. A classified order of assets on balance sheet balance sheet groups assets and liabilities as current and non-current. The order on a balance sheet helps to evaluate a company’s liquidity. The left side of the balance sheet is the business itself, including the buildings,…

This is usually the case where customers return goods due to they are damaged or defective. In this circumstance, the sales returns and allowances and related accounts are recorded the same as above journal entry. Sales returns, allowances, and discounts are the three main costs that can affect net sales. All three costs generally must…

Take bookkeeping off your to-do list and let the experts worry about it for you. You will save time to focus on all the other aspects of your business. Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support. We support and work with most major…

Comparing gross profits year to year or quarter to quarter can be misleading because gross profits can rise while gross margins fall. Gross profit and gross profit margin will both tell you how successful a company is at covering its production costs. Gross profit helps understand the dollar value of the income that a company…

Comparing gross profits year to year or quarter to quarter can be misleading because gross profits can rise while gross margins fall. Gross profit and gross profit margin will both tell you how successful a company is at covering its production costs. Gross profit helps understand the dollar value of the income that a company…

Comparing gross profits year to year or quarter to quarter can be misleading because gross profits can rise while gross margins fall. Gross profit and gross profit margin will both tell you how successful a company is at covering its production costs. Gross profit helps understand the dollar value of the income that a company…