Bookkeeping

When a customer pre-pays a company for a service that the company will perform in the future, the company experiences deferred revenue. These are the two adjusting entries for deferred revenue we will cover. This journal entry is made to recognize the $3,000 as a liability since the company has a performance obligation to transfer[...]

SG&A and operating expenses are mistakenly used interchangeably. Common types of insurance include workers’ compensation and general & professional liability. Insurance costs will vary based on the needs and industry of the business. This means the cost of shipping supplies and shipping transportation. Outside factors such as fuel cost and government regulations can also impact[...]

Using the basic accounting equation, the balance sheet for Cheesy Chuck’s as of June 30 is shown in Figure 2.9. We should note that we are oversimplifying some of the things in this example. This process is explained starting in Analyzing and Recording Transactions. Our first step is mainly based on the estimation of current[...]

This means that the balance sheet should always balance, hence the name. If they don’t balance, there may be some problems, including incorrect or misplaced data, inventory or exchange rate errors, or miscalculations. Balance sheet accounts are used to sort and store transactions involving a company’s assets, liabilities, and owner’s or stockholders’ equity. The balances[...]

Some bookkeeping services can provide a full suite of bookkeeping, accounting and tax services. Examples include bookkeeping journal entries, bookkeeping ledger, bookkeeping reconciliation and bookkeeping trial balance. Forbes Advisor analyzed 13 online bookkeeping services and considered 15 metrics such as price, features, customer service, ease of use, integrations and service level. We also looked at[...]

It ensures that all financial transactions are reconciled between a company’s bank records and accounting records. The cloud-based infrastructure on which virtual accounting relies ensures that data can be accessed in real-time from anywhere with an internet connection. One such solution gaining prominence in this matter is virtual accounting. This innovative approach to accounting is[...]

Essentially, you’ll give a third-party bookkeeper access to important financial information like bank statements, payroll, tax documents, and your accounting software. They’ll take it from there, generating financial reports, ensuring your ledgers are up to date, and tracking money that goes both in and out of the company, among other essential tasks. In the realm[...]

The material, labor, and overhead costs and revenue from the landscaping job posted when Riverside performed the work. Riverside’s $400 profit posted when they billed the Joneses on March 20. When you can match revenue with expenses, you’ll know the profitability of each product or service. As your company’s bookkeeper, you may generate a tax[...]

It can also stand for “money making Mitch,” a reference to the character from the movie Paid in Full. While Roman numerals are technically additive (MM is really 1,000 plus 1,000 or 2,000), MM is still a fairly common way of abbreviating millions, especially in certain industries like oil and gas. This guide will explore[...]

A variation is the quick ratio, which strips the inventory asset out of the current ratio calculation, on the grounds that inventory can be difficult to convert into cash in the short term. Generally, a comprehensive analysis of the balance sheet can offer several quick views. In order for the balance sheet to ‘balance,’ assets[...]