Category: Bookkeeping

Self-employment deduction from income can include expenses that are both ordinary and also necessary for your business. Expert advice on demandTalk live to an expert who can give you one-on-one advice as often as you need. The foundation of financial health for every business owner…

Depending on your state’s laws, you may be able to combine the 2 laws. A more efficient and hassle-free solution would be using paid time off tracking software to automate the entire process. In other words, you wouldn’t need to manually update time off allowances,…

An outstanding check is when the payee neglects to cash or deposit a check (or the check gets lost). This means the check does not clear and does not show on a month-end bank statement. Outstanding checks are a liability for the payee, but once…

Variances impact each of the financial statements, including the balance sheet and income statement. If higher costs lead to increased spending, the business may develop a cash flow shortage. Material cost variances are due to differences in material usage, or a difference in the price…

By making this journal entry, the company recognizes $6,000 of the prepayment as earned revenue and decreases the unearned revenue account by the same amount. The revenue recognition principle dictates that revenue should be recognized when it is earned, regardless of when payment is received.…

In most cases, it will be a sequential number or alphanumeric characters that is systematically assigned to each invoice (if it was done correctly). Despite appearing minor, the invoice number is crucial in any invoice. Every invoice should include a unique number to sort and…

You can also improve the performance of your partner law firms and vendors by giving them evaluations that include accruals vs. actuals reports at the entity levels. Then, you can generate detailed reports based on those different criteria with a click of a button. This…

Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they’re private or public owners. The composition of…

The accounts payable turnover ratio is a financial metric that calculates the rate of paying off the supplier by the company. It is also sometimes referred to as the Creditors Turnover Ratio or Creditors Velocity Ratio. A higher ratio shows suppliers and creditors that the company pays…

Whether you’re posting entries manually or using accounting software, all revenue and expenses for vertical analysis calculator each accounting period are stored in temporary accounts such as revenue and expenses. Suppose a business had the following trial balance before any closing journal entries at the…