Small Business Bookkeeping: A Beginners Guide

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 […]

Personal Loans for Amazon Employees

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 […]

Contingent Liability: What Is It, and What Are Some Examples?

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 […]

What is a Predetermined Overhead Rate?

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 […]

Small Business Bookkeeping 2023 Guide

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 […]

Understanding Accrued Interest

Capitalized interest appears on the balance sheet rather than the income statement. Accrual-based accounting requires revenues and expenses to be recorded in the accounting period when they are incurred, regardless of when the cash payments are made. The accrual-based accounting method discloses a company’s financial health more accurately than the cash-based method. An installment loan […]

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