Category: Bookkeeping

The factor is calculated by dividing the length of time the bond was held after the last coupon payment by the time from one coupon payment to the next. Pro rata distribution is also a fundamental concept in the realm of employee benefits, particularly when it comes to part-time employees or those who join or…

For example, accountants have to be consistent in deciding the size of an inventory reserve from year to year. The GAAP principle of prudence says accountants should stick to the facts and not guess too much. So, when they’re figuring out how much money to set aside for potential inventory losses, they mostly look at…

At the core of Bitcoin’s uniqueness is its capped maximum supply of 21 million coins. This sets it apart from traditional fiat currencies, which can be endlessly printed. The limited supply aims to eliminate inflationary pressures, providing a stable foundation for a reliable Unit of Account. Second, there is a first-mover advantage in acquiring general…

You should always report payments on your tax returns that you earned for business activities, even if you didn’t receive a 1099-K logging them. If you expect to owe at least $1,000, you may need to make estimated tax payments throughout the year instead of waiting to pay when you file, to avoid penalties. But…

However, if you can provide some reasonable reconstruction of the deduction, many auditors will allow it. Most taxpayers won’t need to hold onto grocery receipts, but if any of the above deductions are ones you plan to take, keep them to be sure you can back up your deductions. The IRS will allow you to…

No matter the size of a company and no matter the product a company sells, online bookkeeping the fundamental accounting entries remain the same. It is not taken from previous examples but is intended to stand alone. When filling in a journal, there are some rules you need to follow to improve journal entry organization.…

Instead, it must classify it as unearned revenue and recognize $10 per month as earned revenue as the service is provided. The adjusting entry for unearned revenue will depend upon the original journal entry, whether it was recorded using the liability method or income method. Therefore, the journal entry to record unearned revenues is as…

He has worked with multi-national companies, but most enjoys assisting small businesses with all legal matters from formation to dissolution. Dean routinely represents individuals and businesses before the IRS and various state taxation agencies. From audits to appeals, he works closely with his clients to reach favorable outcomes and beneficial resolutions. Though he assists many…

We’ll help you determine if outsourcing your accounting and bookkeeping is the right decision for your organization. But if you’re spending more than you bring in for several periods in a row, you’re headed for trouble. Expenses can be summarized into high-level categories or broken into specific accounts or classes. SStatement of retained earnings calculates…

To operate your business effectively, Cash Flow Management for Small Businesses you need to be able to pay off short-term debts and expenses when they become due. While we can estimate the non-cash working capital changefairly simply for any year using financial statements, this estimate has to beused with caution. Changes in non-cash working capital…