Bookkeeping

A traditional income statement shows business revenue minus expenses and losses for a certain accounting period. It tells you how much income your business netted during that period of time. Typically, a company will use a traditional income statement for external reporting purposes and a contribution margin income statement to analyze the performance of a […]

Cloud-based accounting software like FreshBooks is a comprehensive program that offers robust, trustworthy, and cost-effective financial services. If you’re tired of doing your own bookkeeping, you should consider this option. You can hire local bookkeepers or a bookkeeping team located near your company. Step 4 – Get the Process in Order The services are the

The trial balance is used to test the equality between total debits and total credits. Managers and accountants can use this trial balance to easily assess accounts that must be adjusted or changed before the financial statements are prepared. Since temporary accounts are already closed at this point, the post-closing trial balance will not include

To quickly identify if a cost is a period cost or product cost, ask the question, “Is the cost directly or indirectly related to the production of products? What a company expects to pay during a particular accounting period is included is rent a period cost in an expense account while what it pays during

The credit to the rent revenue account increases the revenue account, as the company has earned the rent payment. Recent updates to lease accounting, including new standards ASC 842, IFRS 16, GASB 87, and SFFAS 54, have changed the accounting treatment for some types of leasing arrangements. In short, organizations will now have to record

But to understand the accounting process, let’s learn how to record the cash payment for telephone charges. When you receive the $20 from the employee, you will credit the account Receivable from Employees. Another common expense for business owners is the cost of paying employees. In this case, the total value of your payroll gets

The discounted payback method takes into account the present value of cash flows. Given a choice between two investments having similar returns, the one with shorter payback period should be chosen. Management might also set a target payback period beyond which projects are generally rejected due to high risk and uncertainty. In this case, the

If the predetermined overhead rate calculated is nowhere close to being accurate, the decisions based on this rate will definitely be inaccurate, too. That is, if the predetermined overhead rate turns out to be inaccurate and the sales and production decisions are made based on this rate, then the decisions will be faulty. This can

Delaware Franchise Taxes for corporations are due by March 1 of every year. If the tax is not paid on or before March 1, the state imposes a $200 late penalty, plus a monthly interest fee of 1.5%. The term “Franchise Tax” does not imply that your company is what are held to maturity securities

For example, if you have $10.000 in your bank account while the bank needs to charge you $100. The bank issues a bank debit note charging you with the fee for a specific service and your balance now has become $9.900. A bank will take money out of an account for insufficient funds, overdraft fees,