Categoria: Bookkeeping

Business owners should not use the single-entry option because they can’t generate the account activity required to create balance sheets or cash flow statements. If you’re managing your business with the single-entry method, a CPA can help you move to the double-entry method. Bookkeeping is the ongoing recording and organization of the daily financial transactions […]

If you provide any service other than maintenance and insurance for an automobile, you must add the FMV of that service to the annual lease value of the automobile to figure the value of the benefit. The value of any other service you provide for a vehicle isn’t included in the cents-per-mile rate. In most […]

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Sometimes notes payable are issued for a fixed amount with interest already included in the amount. In this case the business will actually receive cash lower than the face value of the note payable. Notes payable are liabilities and represent amounts owed by a business to a third party. The $200 difference is debited to […]

This can result from taking out loans, credit purchases, or the inability to pay bills on time. Some common examples of creditors include banks, credit card companies, mortgage lenders, and suppliers. These entities provide funds or goods on credit, expecting to receive payment later. In accounting, a creditor is classified as a liability on the […]

Pending lawsuits and product warranties are common contingent liability examples because their outcomes are uncertain. The accounting rules for reporting a contingent liability differ depending on the estimated dollar amount of the liability and the likelihood of the event occurring. The accounting rules ensure that financial statement readers receive sufficient information. Contingent liabilities are recorded […]

Connie’s Candy used fewer direct labor hours and less variable overhead to produce 1,000 candy boxes (units). The allocation of overhead to the cost of the product is also recognized in a systematic and rational manner. The expected overhead is estimated, and an allocation system is determined. The overhead is then applied to the cost […]

We know every form you need and every deduction you can take to pay less this year. It can be time-consuming to research how to stay on top of your books — not to mention best practices for developing a financial system from scratch. If you’re still on the fence about hiring a bookkeeper, here […]

If you didn’t report income when you should have, you’ll want to hold onto your records for six years. The IRS rule says that if the income you omitted is 25% or more of the gross income shown on your return, you’ll need to keep your tax returns and records for six years. You should […]

So settle in with a toasty mug and check out the new QuickBooks updates we’ve got for you this month. Gusto is an all-in-one people platform that simplifies payroll many human resources tasks. As an admin, you can view the status of an employee’s setup in your employee list. The opinions, analyses, reviews or recommendations […]