Category: Bookkeeping

It doesn’t matter that you have not earned the revenue, only that the cash has entered your company. According to the accounting reporting principles, unearned revenue must be recorded as a liability. In this article, I am going to go over the ins and outs of unearned revenue, when you should recognize revenue, and why […]

Always consider where your target market hangs out before engaging in any social media marketing activities. You have a business license, a business name, business insurance, a strategic plan, and your core offerings in place. It’s important that you are thinking of your own business as a complete solution to your client. You are not […]

Like QuickBooks, FreshBooks offers a free 30-day trial of its product or the option to receive a discounted price for the first several months. Xero is most often used by small to medium-sized businesses (SMBs). Although it has the lowest starting price, at $12 per month, it can be a little more difficult to navigate […]

You can also scan paper receipts and send them to your digital storage so you don’t have to deal with a ton of paper. It’s a good idea to start a vendor file, where vendors are sorted alphabetically. You should also create a payroll file, sorted by payroll date, and a bank statement file that’s […]

In other words, these are the assets remaining after you pay off all the debts and the liabilities. Also, liabilities can be represented on the right-hand side of the balance sheet. So, liabilities can be further divided into current liabilities and non-current liabilities. If you look at the information that’s recorded in an accounting journal […]

Public accounting firms generally refer to accounting that is external to a business, whereas private accounting is internal to the business. Certified public accountants work for a wide range of clientele, including the government, while private accountants typically work with a specific company. Because public accountants may work with government agencies, they are required to […]

In accounting, a general ledger is used to record a company’s ongoing transactions. Within a general ledger, transactional data is organized into assets, free cash flow to the firm fcff definition liabilities, revenues, expenses, and owner’s equity. After each sub-ledger has been closed out, the accountant prepares the trial balance. Thus, these details come in […]

It prefers verification through actual transactions or events rather than relying on speculative future outcomes. When faced with potential losses or declines in the value of assets, conservatism requires companies to recognize these losses immediately. It ensures that financial statements provide a more conservative and cautious how to assign a deduction, bonus or benefit to […]

With a flexible budget, it’s necessary to way for the numbers because this is not a budget that can be made with a prediction. On the other hand, a fixed budget with the predicted costs and profits can be prepared before the term is over. This is also a great way to make comparisons between […]

After revision to IAS 1 in 2003, the Standard is now using profit or loss for the year rather than net profit or loss or net income as the descriptive term for the bottom line of the income statement. Adding to income from operations is the difference of other revenues and statement of comprehensive income […]