What Is A Note Payable? 27 maart 2023 – Posted in: Bookkeeping

It’s usually recorded as ‘Interest Payable’ – a current liability if the interest is due within a year of the balance sheet date. The related interest expense affects the income statement, thereby also impacting the company’s retained earnings and overall equity. The value of getting journal entries correct, especially for significant items like Notes Payable, can’t be overemphasised. Errors in recording these transactions could potentially skew the financial statements and misrepresent a company’s financial health.…

Are Travel Reimbursements Taxable? What You Need to Know 9 maart 2023 – Posted in: Bookkeeping

To create a fair compensation program, you should follow the best practices for mileage reimbursement in your industry and the IRS mileage reimbursement rules for employers. Smart software solutions have become an irreplaceable ally in tracking speed, distance, and the exact time for each location. They enable a well-organized and straightforward system for handling employee mileage reimbursements. This article will help you better understand IRS mileage reimbursement rules, regulations, and rates, enabling you to make…

Imprest Definition, What is Imprest, Advantages of Imprest, and Latest News 12 oktober 2022 – Posted in: Bookkeeping

If the petty cash fund is consistently depleted before the replenishment cycle, the imprest amount may need to be increased. This analysis should align with budget reviews to ensure the imprest system remains cost-effective. Despite being the best best option for conventional petty cash funds, the imprest system does have its drawbacks. The imprest system works by allocating a set amount of cash to an account or ‘float’. This float is a standalone fund that’s…

Bookkeeping Service CPA Bookkeeper Irvine, CA 28 juli 2022 – Posted in: Bookkeeping

I also received some of the best tax and general business advice from them. Use our secure portal to send over your documents and provide us with access to QuickBooks, Sage, or whatever bookkeeping software you prefer. Our bookkeeping service, based in Irvine, CA aims to bring up and promote women in the accounting industry and we feel that these values set us apart. Accountant (Remote) Additionally, QuickBooks some firms neglect proper documentation, such as…

Contribution Margin Overview, Guide, Fixed Costs, Variable Costs 13 juli 2022 – Posted in: Bookkeeping

Profit, on the other hand, is the amount that remains after both the variable and fixed costs have been fully covered. You might wonder why a company would trade variable costs for fixed costs. One reason might be to meet company goals, such as gaining market share. Other reasons include being a leader in the use of innovation and improving efficiencies. Step 2: Determine Variable Costs Contribution margin and gross margin are both important profitability…

What is the percentage-of-sales method? 20 juni 2022 – Posted in: Bookkeeping

He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University. By integrating AI into your sales strategy, you can identify underperforming areas, adjust pricing dynamically, and improve customer engagement. AI unifies sales data from various channels, offering a 360-degree view that enables smarter, faster decisions. Higher conversions, stronger customer relationships, and sustainable revenue growth. We hope this article gives you a better understanding…

Understanding Encumbrance Accounting & Its Process 27 mei 2022 – Posted in: Bookkeeping

To record the encumbrance, you’ll need to complete the following encumbrance accounting processes by recording the following journal entries. It’s not a prepaid expense, as the cash hasn’t left your account, nor is it retained earnings an accrued expense, as it also hasn’t been incurred. Organizations account for future expenditures by enforcing budgetary controls and monitoring spending. The Importance of Managing Encumbrances for Budgetary Compliance This involves updating the encumbrance amounts as commitments are fulfilled…

Understanding Accumulated Depreciation: Definition, Calculation, and Examples 19 januari 2022 – Posted in: Bookkeeping

Book value is the asset’s current value on the balance sheet after deducting accumulated depreciation from the original purchase cost. Analysts track the ratio of accumulated depreciation to the asset’s original cost. A high ratio indicates aging equipment and potential future cash outlays, while a low ratio suggests recent investment. Depreciation expense is the periodic charge that appears on the income statement, while accumulated depreciation is the running total on the company’s balance sheet. Units…

Difference Between Journal and Ledger: Know the key differences 7 december 2021 – Posted in: Bookkeeping

It is essentially a set of all real, personal and nominal accounts where transactions affecting them are recorded. The article provides an overview of the general journal and general ledger, highlighting their roles in recording and organizing business transactions. It also explains the processes of journalizing and posting, emphasizing how financial data is transferred and structured for accurate accounting. The Journal is called the ‘Book of Original Entry’ because it is the very first book…

Accounting for Cash Surrender Value in Corporate Finance 14 juli 2021 – Posted in: Bookkeeping

The cash surrender value of the life insurance policy is an asset that is recorded on the balance sheet (“B/S”) of the company. The amount recorded varies from year to year as the cash surrender value of the policy increases or decreases. You should receive a Form 1099-R showing the total proceeds and the taxable part. Impact on Beneficiaries Public companies must report their financial statements using International Financial Reporting Standards (IFRS). Like copyright and…