Bookkeeping

Equivalent units of production is a term applied to the work-in-process inventory at the end of an accounting period. It is the number of completed units of an item that a company could theoretically have produced, given the amount of direct materials, direct labor, and manufacturing overhead costs incurred during that period for the items […]

Following the steps outlined in this article, you can soon be on your way to a smooth and speedy billing process. This method means you don’t need to remember to chase payments and gives clients the gentle nudge they might need if making payment has fallen off their radar. If you’re using Toggl Track, you

Understanding potential lost profit is critical when making decisions in both the worlds of business and finance as well as in everyday life. If Tony is making a decision to buy a new vehicle for his personal use, he must attempt to minimize the potential profit loss when it comes to value-added from the vehicle.

Sales tax didn’t take off until the Great Depression, when state governments were having difficulty finding ways to raise revenue successfully. Of the many different methods tested, sales tax prevailed because economic policy in the 1930s centered around selling goods. Mississippi was the first https://www.online-accounting.net/depreciable-asset-definition/ in 1930, and it quickly was adopted across the nation.

You can find the balance sheet on a company’s 10-K filing, which is required by the US Securities and Exchange Commission (SEC) for all publicly traded companies. Total liabilities are all of the debts the company owes to any outside entity. The opposite of the above example applies if a company has a D/E ratio

A bookkeeper reconciles bank statements regularly to ensure your bank account balance matches the cash balance in your ledger. If the amounts in the bank statement and internal records don’t match, you’ll need to find out where the discrepancies are and adjust the entries to ensure they match the bank statements correctly. Startups need more

Sometimes your current bank account balance is not a true representation of cash available to you, especially if you have transactions that have not settled yet. If you’re not careful, your business checking account could be subject to overdraft fees. If you’re reconciling an account for the first time, review the opening balance. More than

Many of the top online bookkeeping firms also offer add-on services, such as tax filing and catch-up bookkeeping, which can help you make efficient use of your time. Pilot did receive strong user reviews, and it scored higher than average for its bookkeeping and tax services. While it doesn’t offer full-service payroll, it can invoice

HOA reserve funds only cover repairs, replacements, and unforeseen expenses. Collecting money for reserve funds should be built into the fee structure for residents of the HOA. In other words, the monthly fee that’s charged to residents should include enough money for regular maintenance and services, as well as some money to set aside for

For instance, if you send an employee to a lunch meeting with a client, they can create an expense report to invoice your company for the cost of the lunch, parking, and gas they paid for. For example, if you sent a client an invoice based on your estimated hours and ended up working additional