Accounting Tools

JUNE 12, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is a Financial Statement Audit? A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor. Accounts payable.

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

Accounting Tools

MAY 24, 2023

This enhanced closing speed comes at a cost, for the accuracy of the financial statements is reduced by the various revenue and expense accruals that are normally included in a more comprehensive close. The reduced accuracy level makes the soft close impractical for reviewed or audited financial statements that are read by outsiders.

Accruals 75

Accruals Financial Statements Account Reconciliation Auditing 75

Accounting Tools

AUGUST 6, 2023

It is especially necessary to create year-end adjustments when the financial statements are to be audited by the company’s auditors. Examples of Year-End Adjustments Examples of the many types of year-end adjustments are as follows: Accrual of expenses for which supplier invoices have not yet been received.

General Ledger 75

General Ledger Accruals Billing Reconciling 75

Accounting Tools

APRIL 12, 2023

An alternative method for recording transactions is the accrual basis of accounting , under which revenue is recorded when earned and expenses are recorded when liabilities are incurred or assets consumed, irrespective of any inflows or outflows of cash. The accrual basis is most commonly used by larger businesses.

Accruals 75

Accruals Financial Statements Accounting Accounting 75

Accounting Tools

OCTOBER 9, 2023

The Accrual Basis of Accounting The primary accounting methods are the accrual basis of accounting and the cash basis of accounting. Under the accrual basis, revenue is recognized when earned, and expenses are recognized when consumed. The Cash Basis of Accounting The other main accounting method is the cash basis of accounting.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

OCTOBER 26, 2023

Accrual Basis of Accounting Under the accrual basis of accounting , a business recognizes revenue when earned and expenses when expenditures are consumed. This approach requires a greater knowledge of accounting, since accruals must be recorded at regular intervals.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

DECEMBER 19, 2023

Revenue Recognition in Accrual Basis Accounting The criteria just noted for revenue recognition are required for accrual basis accounting, where revenue is recognized once it has been earned. Thus, the recognition of revenue under the accrual basis of accounting does not necessarily coincide with the receipt of a customer’s payment.

Accruals 40

Accruals Bookkeeping Auditing Accounting 40

Accounting Tools

JULY 24, 2023

Related Courses Bookkeeping Guidebook How to Audit Revenue Revenue Recognition What is Accrued Income? This concept is used under the accrual basis of accounting , where income can be earned even when the related cash has not yet been received.

Accruals 40

Accruals Financial Statements Bookkeeping Billing 40

Accounting Tools

JUNE 14, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is a Financial Statement Review? A review does not require the accountant to obtain an understanding of internal control , or to assess fraud risk , or other types of audit procedures.

Financial Statements 75

Financial Statements Auditing Accruals Financial Reporting 75

Accounting Tools

JULY 24, 2023

This report presents a more clear view of a company's cash flows than the income statement, which can sometimes present skewed results, especially when accruals are mandated under the accrual basis of accounting. Auditors audit the balance sheet, so that is the document that they have the greatest interest in.

Financial Statements 75

Financial Statements Accruals Auditing Accounting 75

Accounting Tools

JUNE 20, 2023

There are several types of accounting that range from auditing to the preparation of tax returns. The career track here is to progress through various audit staff positions to become an audit partner. The career track progresses from various internal auditor positions to the manager of internal audit.

Accounting 75

Accounting Accounting Financial Statements CPA 75

Accounting Tools

JULY 8, 2023

This packet is useful for keeping related documents in one place, and makes it easier to both justify and audit payables transactions. Voucher information may be assembled into a packet, where the basic voucher document is attached to the supplier invoice, evidence of receipt, and purchase order.

Accounts Payable 75

Accounts Payable Accounts Payable Purchase Order Accruals 75

Accounting Tools

JUNE 15, 2023

Related Courses Bookkeeping Guidebook How to Audit Revenue Revenue Recognition What is Interest Revenue? Under the accrual basis of accounting , a business should record interest revenue even if it has not yet been paid in cash for the interest, as long as it has earned the interest; this is done with an accrual journal entry.

Accruals 40

Accruals Deposits Financial Statements Bookkeeping 40

Accounting Tools

MAY 14, 2023

The best-known of these principles are as follows: Accrual principle. This is the foundation of the accrual basis of accounting. This prevents intermingling of assets and liabilities among multiple entities, which can cause considerable difficulties when the financial statements of a fledgling business are first audited.

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Accounting Tools

APRIL 7, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management What is Accrued Payroll? The accrued payroll concept is only used under the accrual basis of accounting ; it is not used under the cash basis of accounting. It represents a liability for the employer.

Payroll 40

Payroll Accruals Tax Auditing 40

Counto

MARCH 19, 2024

Proper record-keeping is crucial for accurate tax reporting and to navigate audits or inquiries by the Inland Revenue Authority of Singapore (IRAS). Tax Reporting Methods Adopt the accrual method of bookkeeping for accurate reporting. However, for cash-based businesses, reporting based on bank balance changes may suffice.

Record Keeping 52

Record Keeping Financial Records Accruals Corporation Tax 52

Accounting Tools

NOVEMBER 1, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management The calculation of payroll involves the determination of gross pay , followed by the subtraction of deductions and payroll taxes to arrive at net pay. The calculation of payroll is a highly regimented process.

Payroll 75

Payroll Accruals Collections Tax 75

Accounting Tools

SEPTEMBER 7, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook Accounts receivable is the amount owed to a seller by a customer. As such, it is an asset , since it is convertible to cash on a future date.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accounting 75

Accounting Tools

APRIL 5, 2023

Auditors rely upon a client’s final accounts to conduct an audit of its accounting records and financial statements. Final accounts is a somewhat archaic bookkeeping term that refers to the final trial balance at the end of an accounting period from which the financial statements are derived.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

SEPTEMBER 29, 2023

Estimates are used in accrual basis accounting to make the financial statements more complete, usually to anticipate events that have not yet occurred, but which are considered to be probable. The basis upon which an accounting estimate is made should be fully documented, in case it is audited at a later date.

Accruals 40

Accruals Accounting Accounting Financial Statements 40

Accounting Tools

NOVEMBER 6, 2023

Alternatively, the account contains the amount of fees actually earned during the reporting period, irrespective of the amount of cash received from customers, if the reporting entity is operating under the accrual basis of accounting.

Accruals 40

Accruals Billing Auditing Tax 40

Accounting Tools

OCTOBER 4, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management What is Payroll Expense? In an accrual basis company, payroll expense is the amount of salaries and wages earned by employees during the period, whether or not these amounts were paid during that period.

Payroll 40

Payroll Accruals Auditing Tax 40

Accounting Tools

MAY 15, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is the Allowance for Doubtful Accounts? The allowance for doubtful accounts is paired with and offsets accounts receivable. It represents management’s best estimate of the amount of accounts receivable that will not be paid by customers.

Accounting 75

Accounting Accounting Accounts Receivable Accounts Receivable 75

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Auditing State and Local Governments Governmental Accounting The Green Book Explained The Yellow Book Explained What is a Fiduciary Fund? When financial statements are prepared for fiduciary funds, they are presented using the economic resources measurement focus and the accrual basis of accounting.

Accruals 40

Accruals Financial Statements Auditing Accounting 40

Accounting Tools

APRIL 4, 2023

These key assumptions are: Accrual assumption. Transactions are recorded using the accrual basis of accounting , where the recognition of revenues and expenses arises when earned or used, respectively. The latter approach will not result in financial statements that can be audited. Conservatism assumption.

Financial Statements 40

Financial Statements Accruals Accounting Accounting 40

Accounting Tools

MAY 21, 2023

For example, you could accrue unpaid wages at month-end if the company is on the accrual basis of accounting. Thus, a wage accrual in the preceding period is reversed in the next period, to be replaced by an actual payroll expenditure. Compound Journal Entry A compound journal entry is one that includes more than two lines of entries.

General Ledger 75

General Ledger Financial Statements Accruals Payroll 75

Accounting Tools

SEPTEMBER 27, 2023

Related Courses Bookkeeping Guidebook How to Audit Liabilities The Balance Sheet What is an Accrued Liability? Reversing Accruals Most accrued liabilities are created as reversing entries , so that the accounting software automatically cancels them in the following period.

Accruals 40

Accruals Purchase Order Invoicing Payroll 40

Accounting Tools

APRIL 8, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is an Accrued Receivable? Revenue has not really been earned prior to completion, so there should be no accrual prior to that point. ABC then earns another $70,000 on the next project milestone in March.

Accruals 40

Accruals General Ledger Invoicing Billing 40

Accounting Tools

OCTOBER 24, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is Gross Accounts Receivable? The gross accounts receivable concept only arises under the accrual basis of accounting. Under the alternative cash basis of accounting , receivables are not recorded.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

Related Courses How to Audit Liabilities The Balance Sheet What are Notes Payable? A note payable is a written promissory note. Under this agreement, a borrower obtains a specific amount of money from a lender and promises to pay it back with interest over a predetermined time period.

Accruals 75

Accruals Accounts Payable Accounts Payable Auditing 75

Billah and Associates

JULY 19, 2023

Accrual basis vs. cash basis accounting : Accrual basis accounting recognizes revenue and expenses when they are *earned* or *incurred*, regardless of the cash flow. By maintaining accurate records, small businesses can minimize errors and prepare well-documented tax returns, reducing the risk of audits and penalties.

Bookkeeping 52

Bookkeeping Financial Statements Accruals Bank Reconciliation 52

Accounting Tools

JUNE 14, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management A commission is a fee that a business pays to a salesperson in exchange for his or her services in either facilitating or completing a sale. Calculating a sales commission depends on the structure of the underlying commission agreement.

Payroll 74

Payroll Accruals Collections Accounts Receivable 74

Accounting Tools

SEPTEMBER 8, 2023

Outside auditors rely on this information when auditing a firm’s financial statements. Related Articles Accounting Journal Entries Basic Accounting Concepts Cash Basis vs. Accrual Basis Accounting Debits and Credits The Accounting Cycle The Purpose of Accounting

Financial Statements 76

Financial Statements Accounting Accounting Accruals 76

Counto

MAY 3, 2024

Operational Efficiency: Consider how the change will impact your operational cycle, including budgeting, tax planning, and external audits. Here are some articles you might find helpful: Filing requirements for Pte Ltd companies Cash vs accrual accounting ECI filing The post Fiscal Year in Singapore: What Is It and Why Is It Important?

Financial Reporting 52

Financial Reporting AR Accruals Tax 52

Accounting Tools

JULY 28, 2023

Related Courses Bookkeeping Guidebook How to Audit Revenue Revenue Recognition What is the Installment Method? When a seller allows a customer to pay for a sale over multiple years, the transaction is frequently accounted for by the seller using the installment method.

Cash Collection 40

Cash Collection Accruals Collections Record Keeping 40

Accounting Tools

AUGUST 8, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management What is a Biweekly Payroll? When a company uses a biweekly payroll, this means that some additional wage accrual will probably be needed at month-end, since the pay period does not necessarily coincide with the accounting period.

Payroll 40

Payroll Accruals Financial Statements Auditing 40

Accounting Tools

OCTOBER 12, 2023

Related Courses Bookkeeping Guidebook Credit and Collection Guidebook How to Audit Receivables What is a Bad Debt? An organization using the accrual basis of accounting will probably use the allowance method. A bad debt is a receivable that a customer will not pay. Bad debts are possible whenever credit is extended to customers.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accruals 75