Bookkeeping

Business accounting is integral to the operation of small and medium-sized businesses. Business owners can choose to manage their own finances, hire a bookkeeper, or outsource accounting duties. Bookkeeping is a mechanical process that records the routine economic activities of a business. For a small business, accounting involves tracking money flow in various forms, including …

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The primary distinction between cash and accrual accounting is in the timing of when expenses and revenues are recognized. With cash accounting, this occurs only when money is received for goods or services. Accrual accounting instead allows for a lag between payment and product (e.g., with purchases made on credit). The Wages and Salaries Payable …

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For more complex tax workflows, we offer the ability to customize an API solution that fits your business best. Tackle the most complex tax returns, such as multitiered consolidated return processing for corporations and partnerships. GoSystem Tax RS also features an automatic calculation option, allowing users to view return calculations as information is entered with …

Web Demo GoSystem Tax RS: Income Tax Software for the Enterprise Firm From Thomson Reuters Read More »

When it comes to industrial operations, industrial maintenance costs are a necessary expense that should be factored into the overall cost of the product or service. Managing fixed costs effectively is crucial for any business, as the ability to maintain control over these costs can directly contribute to the bottom line. There are multiple strategies …

repairs and maintenance expense definition and meaning Read More »

When deciding whether to expense an item or depreciate an asset, you should examine the present and future financial state of the business. Although expensing a purchase may increase short-term revenue, once you’ve done so, the item is no longer eligible for write-offs on subsequent tax returns. A depreciating asset might cost less upfront, but …

What is the difference between depreciation expense and accumulated depreciation? Read More »

On the other hand, the quick ratio leans more conservatively, especially for inventory-reliant business models. Many business professionals use the quick ratio to check in on their company’s financial status. Using this ratio may be especially important for accountants because they deal directly with the company’s finances. By taking a holistic approach to financial analysis, …

Quick Ratio Explained: A Guide For Business Owners and Investors Read More »

Accumulated depreciation is the total amount of depreciation expense recorded for an asset on a company’s balance sheet. It is calculated by summing up the depreciation expense amounts for each year. Since accelerated depreciation is an accounting method used to recognize depreciation, the result of accelerated depreciation is to book accumulated depreciation. Under this method, …

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Yet one in three rely on existing knowledge to determine sales tax rates and rules, and one in three use zip codes to find sales tax rates. Both strategies are likely to lead to costly errors and negative audit results. What if the customer does not pay the sales tax portion of the invoice? In …

How to Record Sales Tax Journal Entries Read More »

These instruments can include cash, stocks, bonds, derivatives, loans, and other contractual agreements with a monetary value. However, if a company follows the use-it-or-lose-it policy, the PTO adjustment is not carried forward next year. Harold Averkamp (CPA, MBA) has worked as a university accounting accrued payroll instructor, accountant, and consultant for more than 25 years. …

Accrued payroll 101 Read More »