Bookkeeping

You need to track the accumulated depreciation of significant assets because it helps your company understand its true financial position. Note that while salvage value is not used in declining balance calculations, once an asset...

For larger organisations, inventory tends to become more complicated as they deal with higher inventory transactions and thousands of orders per inventory period. Once the COGS balance has been established, an adjustment is made to...

Balance sheets only show you the financial metrics of the company at a single point in time. So balance sheets are not necessarily good for predicting future company performance. By comparing your income statement to...

Generally, unrealized gains/losses do not affect you until you actually sell the security and thus “realize” the gain/loss. You will then be subject to taxation, assuming the assets were not in a tax-deferred account. Profits...

Companies will set their own capitalization threshold because materiality varies by company size and industry. For example, a local mom-and-pop store may have a $500 capitalization threshold, while a global technology company may set its...

Income statements and balance sheets are the most important financial statements. At the end of a specific accounting period, financial statements are created to show the precise financial position of an organization. Posting closing entries...

An example of a sales discount is for the buyer to take a 1% discount in exchange for paying within 10 days of the invoice date, rather than the normal 30 days (also noted on...

A number of factors like quality, on-time delivery, service, contract compliance, responsiveness, and Total Cost of Ownership (TCO). Non-performance is flagged in existing rosters and information systems for future reference. Purchase orders are now sent...

Out of any small-business payroll provider, Paychex Flex’s payroll software is probably the most comparable to RUN by ADP. Like RUN, Paychex Flex has multiple plans that offer more or less the same payroll features...

You can even access engagement letter templates from selected accounting industry bodies (more on this in ‘Sample engagement letters’ below). Identify when the services are expected to conclude, whether it’s a milestone, such as delivery...