The Importance of the Going Concern Assumption in Financial Reporting and Analysis 15 april 2025 – Posted in: Bookkeeping

In addition, management must include commentary regarding its plans on how to alleviate the risks, which are attached in the footnotes section of a company’s 10-Q or 10-K. The reason the going concern assumption bears such importance in financial reporting is that it validates the use of historical cost accounting. The concept directly impacts how assets and liabilities are reported on the balance sheet. For example, if management said that the company is operating well,…

Optimize Your Finances Today 17 maart 2025 – Posted in: Bookkeeping

You can easily get in touch with the company anytime you need clarifications. Exacta will ensure you get the individual attention your business deserves, whether you meet the bookkeeping team weekly or yearly. Exacta Bookkeeping & Tax Services commits to solving financial system challenges for individuals and businesses in different parts of Texas, including Austin. With online bookkeeping services and real human support, Bench is the expert financial solution your business deserves. At Red Leaf…

Contra Asset Account Definition, Examples, List of Accounts 14 februari 2025 – Posted in: Bookkeeping

This account helps to give a more accurate picture of the company’s financial position. This type of reporting allows anyone analyzing the balance sheet to understand much more about the company and its assets than if they were to simply look at the net value of the depreciated asset. By reflecting both accounts on the balance sheet, analysts can understand both the original price and the total decrease in value of a certain asset over…

What is a Contra Asset Account? 27 januari 2025 – Posted in: Bookkeeping

Normal asset accounts have a debit balance, while contra asset accounts are in a credit balance. Offsetting the asset account with its respective contra asset account shows the net balance of that asset. To illustrate, consider a company with a fleet of vehicles that are crucial for its operations. Contra Revenue Account A contra account is an entry on the general ledger with a balance contrary to the normal balance for that categorization (i.e. asset,…

What is a Contra Asset Account? Simple Examples and Easy Explanation – Posted in: Bookkeeping

When we add the balances of two of these assets together, it reflects the net book value or carrying value of the debit balance assets. Reserve for obsolete inventory is a contra asset account used to write down the inventory account if inventory is considered obsolete. Excess, stored inventory will near the end of its lifespan at some point and, in turn, result in expired or unsellable goods. In this scenario, a write-down is recorded…

Free Salvage Value Calculator Estimate Asset Worth 12 september 2024 – Posted in: Bookkeeping

According to Generally Accepted Accounting Principles (GAAP), these Medical Billing Process costs should be capitalized and reflected on the balance sheet as part of the asset’s recorded value. This ensures a precise calculation of depreciation expenses, which ultimately impacts the estimated salvage value. To calculate the annual depreciation expense, the depreciable cost (i.e. the asset’s purchase price minus the residual value assumption) is divided by the useful life assumption. The insurance company will use past…

Massachusetts Income Tax Explained 2025 Valur Valur 7 augustus 2024 – Posted in: Bookkeeping

Massachusetts does not have multiple income tax brackets like some other states, simplifying the calculation of state income tax. Personal income tax deductions decrease your taxable income, which means you owe less taxes. If you’re a full-year resident with an annual Massachusetts gross income of more than $8,000, you must file a Massachusetts tax return. Notably, Massachusetts has the highest maximum marginal tax bracket in the United States. Massachusetts Property Tax Exemptions Massachusetts taxpayers must…

QuickBooks Online Vs QuickBooks Self-Employed Comparison 19 juli 2024 – Posted in: Bookkeeping

The service provides a user experience rivaled only by that of FreshBooks, and its automatic mileage tracking Accounts Payable Management may appeal to frequent business travelers. Beyond that and the income tax help, though, there’s really no compelling reason to go with Intuit QuickBooks Self-Employed. Many sole proprietors could get by with FreshBooks’ $13.50-per-month level, which is less than Intuit QuickBooks Self-Employed’s regular price. time management tools & apps for the self-employed For years, QuickBooks…

The 6 best online payment processing services 5 april 2024 – Posted in: Bookkeeping

You’ll need to invest ‌more time and resources compared to using an out-of-the-box solution, as it involves extensive UX development and rigorous testing. Payment security is a high priority to protect your business from fraud and data breaches, which can damage your reputation and cost you money. For starters, B2B companies need to be aware of how their payment flows work, particularly if they are dealing with both B2B and B2C transactions. Braintree Payment Processing…

Period Costs Definition And Examples: All You Need To Know 29 februari 2024 – Posted in: Bookkeeping

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path. My Accounting Course is a world-class educational resource developed by experts to simplify accounting, finance, & investment analysis topics, period costs so students and professionals can…

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