Bookkeeping

Since the company receives money through either cash or bank, it must increase the related account with a debit entry. On the other hand, it must also increase its liabilities through a credit entry. The name for the account it uses may be unearned revenues, deferred revenues, advances from customers, or prepaid revenues. When a […]

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Taxfyle connects you to a licensed CPA or EA who can take time-consuming bookkeeping work off your hands. Taxes are incredibly complex, so we may not have been able to answer your question in the article. Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you

By breaking it down into common stocks and additional paid-in capital, we can see the different ways investors contribute to a company’s financial foundation. This also helps in gauging the trust and expectations investors have in the company’s potential and future success. It refers to any cash and assets that a shareholder provides to a

Having your own business, you can set your own rate, which can be higher (but keep in mind what other bookkeepers charge their clients so you don’t scare away potential clients). Bookkeeping isn’t hard to learn if you have some basic understanding of how a business works and if you’re interested in keeping financial records

Such decision-making is common to companies that manufacture a diversified portfolio of products, and management must allocate available resources in the most efficient manner to products with the highest profit potential. Say a machine for manufacturing ink pens comes at a cost of $10,000. The Finance Weekly is designed to help financial professionals make confident

The APA must also be approved by the corporation’s shareholders (by a majority of the outstanding shares unless there is a super-majority vote requirement). The shareholder meeting takes place either at or before the APA is signed or between the signing and the closing. A commercial transaction might occur between two entities working toward common

Because equity is equal to assets minus liabilities, the company’s equity would be $800,000. When using the D/E ratio, it is very important to consider the industry in which the company operates. Because different industries have different capital needs and growth rates, a D/E ratio value that’s common in one industry might be a red

Contra revenue accounts appear near the top of the income statement, as a deduction from gross revenue. If the amounts of these line items are minimal, they may be aggregated for reporting purposes into a single contra revenue line item. A sample presentation of contra revenue appears in the following exhibit, which contains the revenue-related

The accounting cycle breaks down financial management responsibilities into eight essential steps to identify, analyze and record financial information. It serves as a clear guideline for completing bookkeeping tasks accurately. After you complete your financial statements, you can close the books. This means your books are up to date for the accounting period, and it