Bookkeeping

The second reason is so that the company can calculate the number of accounts for which it does not expect to receive payment. Using the allowance method, the company uses these estimates to include expected losses in its financial statement. Reviewing your accounts receivable aging report at least monthly—and ideally more often—can help to ensure [...]

An Adverse opinion shall be issued by the auditor where he concludes that on the basis of evidence obtained and procedures performed, there are material misstatements in the financial statements and the impact of the same is high. In this section, the auditor outlines their opinion of the company’s financial status depending on their findings. [...]

Cash Flow for Month Ending July 31, 2019 is $500, once we crunch all the numbers. After accounting for all of the additions and subtractions to cash, he has $6,000 at the end of the period. The real value comes from diving into the details and analyzing these figures in the context of the wider [...]

This is a unique job in that it’s something that, more often than not, can be done from home. Sometimes finding the perfect at-home job starts with finding a great traditional job and then transitioning it to being home-based. Intuit (the maker of TurboTax and other financial software) – Intuit will hire at-home CPAs to [...]

Prepaid expenses might include payments to insurance companies or contractors. The supply store will record a journal entry of $25,000 in the debit column of the general ledger for notes receivable. At the same time, it will also enter a credit of the same amount for the original accounts receivable to cancel out that transaction. [...]

The first payroll transactions recorded should include gross wages as well as any payroll taxes that need to be paid. Based on the exchange of cash, there are three types of accounting transactions, namely cash transactions, non-cash transactions, and credit transactions. For transactions that the software cannot automatically create, record the journal entries as soon [...]

The latter three examples assume that the business puts a cap on how much PTO an employee can accrue in a year. Depending on the type of PTO policy, there might be a date that an employee can once again start accruing PTO and taking time off. That reset date varies from business to business, [...]

Retained earnings refer to the historical profits earned by a company, minus any dividends it paid in the past. To get a better understanding of what retained earnings can tell you, the following options broadly cover all possible uses that a company can make of its surplus money. For instance, the first option leads to [...]