Bookkeeping

Business plans help you align your goals with your budgets and actions. They are a sounding board throughout your business journey, can be adjusted over time, and give you a good place to start, refer back to, and measure progress. Accounting helps track what you have and what you need,…

You can create sub-accounts for all your expenses, like payroll and advertising. Capitalize any expenses as necessary and set up a depreciation schedule for writing off the repair expense. In this scenario, the IRS allows the landlord to make a partial disposition. In essence, the landlord can write off the…

Whatever the reasons behind the changes may be, they will inevitably prevent you from accurately reporting on the project’s progress. Therefore, if you notice that the changes are constant, and not a one-time thing, make sure to reevaluate your budget and set new estimates. Unlike the 2 other types of…

The company can now take steps to rectify the mistakes and balance its statements. Financial statements show the health of a company or entity for a specific period or point in time. Accurate financial statements allow investors to make informed decisions. The statements give companies clear pictures of their cash…

More frequent compounding periods means greater compounding interest, but the frequency has diminishing returns. This example shows the interest accrued on a $10,000 investment that compounds annually at 7% for four different compounding periods over 10 years. You should always consult a qualified professional when making important financial decisions and…

Another variation is to offer a special commission rate on inventory that management wants to eliminate from stock, usually before the inventory becomes obsolete. Instead, your business can leverage a financial automation tool that can handle sales commission accounting and adhere to all regulations, whether they stay the same or…

Expenses decrease retained earnings, and decreases in retained earnings are recorded on the left side. Understanding debits and credits—and the fact that debits are on the left and credits are on the right—is crucial to your success in accounting. Revenue accounts are accounts related to income earned from the sale…

In this example, assume you pay $2,000 in payroll taxes, $1,000 in insurance, $2,000 in benefits and $5,000 in supplies and other miscellaneous expenses. These costs include but are not limited to payroll taxes, pension costs, health insurance, dental insurance, and any other benefits that a company provides an employee.…

A company like McDonald’s franchise has employees that you are “connecting with” through the “Mickey D’s” commercial as you enjoy a burger and fries. You may be familiar with franchise restaurants that have a location such as McDonald’s, Pizza Hut, or Subway. In all of these businesses, you can “buy…

By understanding how to account for accumulated vacation under GAAP, you can ensure that your books comply with generally accepted accounting principles. Each employee is entitled to 12 vacation days per year, accruing one day per month. The company’s policy allows employees to carry over unused vacation days to the…