Category: Bookkeeping

Virtual bookkeeping is also referred to as online bookkeeping or remote bookkeeping. Unlike most other outsourced bookkeepers on our list, Merritt Bookkeeping doesn’t offer any in-house add-ons for payroll and tax services. If you were hoping for a one-stop shop that can tackle all of your financial needs, Merritt might not be the right choice…

Depending on the size of your operation and the complexity of your financial situation, accountants may charge by the hour, by fee-per-service, or via a monthly retainer. Make sure you understand how each structure fits your budget, and agree on how you’ll be charged before any work begins. The five most Accounting For Architects basic…

Depreciation expense is considered a non-cash expense because it does not involve a cash transaction. Because of this, the statement of cash flows prepared under the indirect method adds the depreciation expense back to calculate cash flow from operations. The various methods used to calculate depreciation include straight line, declining balance, sum-of-the-years’ digits, and units…

It’s equally important to compare upfront fees and find the lender that’s most affordable overall — not just the one with the lowest rates. For instance, maybe you want the lowest interest rate and monthly mortgage payment possible — and you’re willing to pay extra upfront to get it. With a little time and dedication,…

It’s equally important to compare upfront fees and find the lender that’s most affordable overall — not just the one with the lowest rates. For instance, maybe you want the lowest interest rate and monthly mortgage payment possible — and you’re willing to pay extra upfront to get it. With a little time and dedication,…

SG&A is both critical to the success of a business and vulnerable to cost-cutting. Cutting the cost se in accounting of goods sold (COGS) can be tough to do without damaging the quality of the product. Cutting operating expenses can be less damaging to the core business but may affect things like employee satisfaction or…

For example, a system can have a drop-down menu for selecting a country, eliminating the possibility of typing errors while entering country names. One primary cognitive factor that plays a crucial role in transposition errors is the limitations of working memory. Working memory refers to the cognitive system responsible for temporarily storing and manipulating information…

It is thus the book of entry for originally recording such types of transactions for which the organization has no special journal. For additional practice in preparing journal entries, here are some more examples of business transactions along with explanations on how their journal entries are prepared. The Double-entry Bookkeeping is a system of recording…

This is known as the future value, and can be calculated in a couple of different ways. In this example, the time given was in years, just as in the formula. Let’s use another example to see how this might be different. Most bank deposit accounts, credit cards, and some lines of credit will tend…

For more information and information on how to access the free QuickBooks Online Accountant platform please visit here. But their impact could be even bigger, as QuickBooks research suggests accountants are now busier than ever. Four out of 10 (43%) report they have more than 40 clients – and 86% are looking to technology to…

Generally, if the life insurance policy has a cash surrender value, that value should appear on the balance sheet. Any cash outflow above the year-over-year increase in cash surrender value will be expensed and reflected on the income statement. Term insurance does not usually have a cash surrender value, whereas UL and WL generally do.…

This means that you won’t need to wait until the entire project is done in order to be paid by the client, which in turn improves the project’s cash flow. Another benefit is that milestone payments make identifying payment problems much easier. Production can also be less predictable, with some projects based on seasonal cycles.…

You can also use this tool to compute monthly payments on an interest-only loan. Just enter the interest percentage, and you’ll know how much that loan costs. By contrast, most checking and savings accounts, as well as credit cards, operate using compound interest. Future Value using Simple Interest: In the former case, the interest is…

On 2 April 2016, Z Traders returned the full amount in cash to Y Merchants. Your responsibilities depend on how the original purchase was made and how you plan on reimbursing the customer. The ABC cosmetics purchase product Y at $40 per piece and product Z at $20. The treatment mentioned above is mainly for…

A future payment to a government agency is requiredfor the amount collected. You’ll see an example of the two journal entries your business will need to create below when recording unearned revenue. Taking the previous example from above, Beeker’s Mystery Boxes will record its transactions with James in their accounting journals. Unearned Revenue Reporting Requirements…

It is often difficult to assess precisely the amount of overhead costs that should be attributed to each production process. Costs must thus be estimated based on an overhead rate for each cost driver or activity. It is important to include indirect costs that are based on this overhead rate in order to price a…

They were formerly known as Walther Business Services which had a solid reputation for high-quality service and integrity. Michelle Ethers worked for Walther Business Services, and they collectively made a plan for her to take over the business before Royal and Connie retired. Their clients agree that Michelle has done a remarkable job upholding the…

USA.gov is the new centralized place for accrued expenses invoice payroll commissions accounts payable accrued liabilities finding government benefits for health care, housing, food, unemployment, and more. Official websites use .gov A .gov website belongs to an official government organization in the United States. I mailed my ITIN application (W-7, tax return etc) to the…

This http://passo.su/forums/index.php?s=d64c4ff77351d115c72802235b3015a1&act=idx makes it crucial for businesses to employ MTM cautiously and to have strategies in place to mitigate potential losses. If the stock was purchased at $100 per share and is now valued at $80 per share, MTM accounting would reflect the $20 loss on the company’s financial statements. This transparency allows stakeholders to…

While companies use absorption costing for their financial statements, many also use variable costing for decision-making. The Big Three auto companies made decisions based on absorption costing, and the result was the manufacturing of more vehicles than the market demanded. With cash flow worksheet absorption costing, the fixed overhead costs, such as marketing, were allocated…

This projection helps in setting financial targets and establishing benchmarks for performance evaluation. Revenue accounts track the income a company earns from its normal business operations, such as sales of goods or services. These accounts generally carry a credit balance, as revenues increase equity. When a company earns revenue, the revenue account is credited, reflecting…

It involves anticipating future financial obligations and employing strategies to meet them while maintaining solvency. One of the key steps in planning for future obligations is to thoroughly analyze a company’s balance sheet, identifying both short-term and long-term liabilities. This enables decision-makers to prioritize their payments and allocate resources accordingly. Importance of Liabilities for Small…

The onboarding process is your first opportunity to impress your clients. Implement a streamlined process to set expectations and establish a strong working relationship. Managing client relationships in a remote setting can pose challenges but also bring rewards. Here’s how you can effectively manage your client relationships in a virtual setting. Clients can contact their…

The asset turnover ratio is calculated by dividing the net sales of a company by the average balance of the total assets belonging to the company. The higher the asset turnover ratio, the better the company is performing, since higher ratios imply that the company is generating more revenue per dollar of assets. A good…

This calculation ensures that businesses have a clear understanding of the expenses incurred in acquiring the necessary materials for production. Production costs refer to the expenses incurred by a company during the manufacturing process of a product. These costs include direct materials, direct labor, and manufacturing overhead. Direct Materials Through careful analysis and strategic management…

Learn more about the details of each additional QuickBooks fee below. Here’s a complete breakdown of what’s included with each QuickBooks Online pricing plan. For just $50, QuickBooks Live Bookkeeping will set you up with an hurdle rate vs internal rate of return irr expert for one session. Tax Forms & Support Zoho Books is…

However, Baselane only allows one user, does not offer accountant access and is not suitable for property management companies. It also has no mobile app, no tenant screening features, and no paid plans. From double-entry accounting, automated invoice management, and payment processing to standardized invoice formats, a customer portal, and much more. There’s also a…

Canoe ensures that alternate investments data, like documents on venture capital, art and antiques, hedge funds and commodities, can be collected and extracted efficiently. The company’s platform uses natural language processing, machine learning and meta-data analysis to verify and categorize a customer’s alternate investment documentation. The platform puts an end to siloed work, providing a…

This not only contributes to environmental sustainability by minimizing waste but also helps companies to generate additional revenue streams, decreasing the overall cost of production for the main product. A by-product is a secondary product derived from a manufacturing process or chemical reaction, which is not the primary product or service being produced. In other…

The main difference between ARR and IRR is that IRR is a discounted cash flow formula while ARR is a non-discounted cash flow formula. ARR does not include the present value of future cash flows generated by a project. In this regard, ARR does not include the time value of money, where the value of…

Billing methods, such as fixed-price, time-and-materials (T&M), and unit pricing, directly affect how revenue and costs are recorded. Fixed-price contracts require careful monitoring of costs against a set budget, while T&M billing requires detailed tracking of labor and materials for accurate invoicing. Accurate management of these billing methods ensures precise financial reporting and cash flow…

The decision to prioritize outreach initiatives—typically based on dollar amounts or number of days overdue—is made easier with AR aging reports as the data needed is at your fingertips. As a small business owner, there’s nothing more disgruntling than not getting paid. Business owners use accounts receivable aging reports to determine which customers have invoices…

PayPal is a popular online payment service, designed to make online purchasing in particular easier and safer. The increased security mainly concerns two special features which also affect accounting. In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to…