Categoria: Bookkeeping

By integrating with other accounting and legal practice management software, InvoiceSherpa streamlines the entire process, making it easier for law firms to stay on top of their receivables. Instead, the interest accrued in IOLTA accounts is directed towards state-sponsored programs for law school scholarships and legal aid. In addition, there are specific rules and regulations…

More importantly, it’s critical to understand what areas of a company’s financials the ratios are excluding or including to understand what the ratio is telling you. It may be unfair to discount these resources, as a company may try to efficiently utilize its capital by tying money up in inventory to generate sales. By excluding…

For example, it would be incorrect to compare the ratios of Company A to that of Company C, as they operate in different industries. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. For the…

The calculations used in equivalent amount meaning the average cost method depend on whether the business is using a periodic inventory system of a perpetual inventory system. This method is popular because of its simplicity in computing unit cost. For illustration purposes, let’s keep our moving average unit cost at $73.13. Last-In First-Out (LIFO Method)…

The key to safeguarding your business from the pitfalls of bad debt lies in effectively managing your debts, as they often occur due to poor financial management. These differences show that management can choose from various methods when applying generally accepted accounting principles and that these choices influence the firm’s financial statements. The aging method…

Credit sales may be used for retaining customers and attracting new ones, but they may also add complexities to record keeping. Compared with cash sales and their simple recording, credit sales need to record not only initial sales but also potential credit losses and eventual cash collections. Focusing on net credit sales, not gross sales,…

If a reduction or rebate occurs, a credit is made to the contra expense account, which offsets the original expense. This method ensures that the financial statements reflect the net expense, rather than the gross amount, providing a more precise financial picture. Contra expense accounts come in various forms, each serving a unique purpose in…

For example, you might sell through independent brokers or agents who arrange transactions in exchange for a commission. To be an effective B2B salesperson, you need to have extensive knowledge of your product or service, as well as your customer’s business needs and challenges. You need to know how your solution can benefit your prospect’s…

Otherwise, CARES Act you’d be “double-dipping” on your tax deductions, according to the IRS. There is no universal depreciation method for all businesses or assets. Have your business accountant or bookkeeper select a depreciation method that makes the most sense for your allowable yearly deductions and most accurate salvage values. An asset’s salvage value subtracted…

All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. John Manufacturing Company, a manufacturer of soda bottles, had the following inventory balances at the beginning and end of 2018. This leads to more effective production planning and boosts https://aresoncpa.com/equipment.html financial performance overall. Deskera People is a…