Accounting Tools

OCTOBER 9, 2023

An accounting method is a set of rules under which revenues and expenses are reported in financial statements. There are also tax implications associated with the choice of accounting method. The Accrual Basis of Accounting The primary accounting methods are the accrual basis of accounting and the cash basis of accounting.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

NOVEMBER 5, 2023

Related Courses Bankruptcy Tax Guide Essentials of Corporate Bankruptcy What is the Liquidation Basis of Accounting? Liquidation basis accounting is concerned with preparing the financial statements of a business in a different way if its liquidation is considered to be imminent.

Accruals 71

Accruals Accounting Accounting Financial Statements 71

Accounting Tools

NOVEMBER 7, 2023

Related Courses The Balance Sheet The Income Statement The Interpretation of Financial Statements What is a Profit and Loss Statement? A profit and loss statement aggregates the revenues , expenses , and profits or losses of a business.

Financial Statements 74

Financial Statements Accruals Tax Accounting Software 74

Accounting Tools

JUNE 11, 2023

In the absence of a journal entry, the expense would not appear at all in the entity's financial statements in the period incurred, which would result in reported profits being too high in that period. Income taxes are accrued based on income earned. Debit to income tax expense, credit to accrued expenses.

Accruals 75

Accruals Accounts Payable Accounts Payable Invoicing 75

Counto

FEBRUARY 22, 2024

It’s a valuable tool for planning and decision-making, especially during tight financial periods. Financial Statement: A financial statement includes various reports detailing your business’s financial transactions, including the balance sheet, income statement, and cash-flow statement.

Accruals 52

Accruals Financial Statements Accounting Accounting 52

Accounting Tools

MAY 21, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Profit Ratio? It is a key indicator of the financial health of an organization. And third, it is easily adjusted with accounting chicanery, such as using aggressive accruals or altering accounting policies.

Accruals 75

Accruals Financial Statements Tax Accounting 75

Billah and Associates

JULY 19, 2023

Proper bookkeeping basics practices ensure accurate financial recording, allowing you to make informed decisions and comply with legal and tax requirements. It ensures accuracy and helps maintain the balance of financial statements. It helps organize financial transactions and facilitates reporting and analysis.

Bookkeeping 52

Bookkeeping Financial Statements Accruals Bank Reconciliation 52

Accounting Tools

APRIL 5, 2023

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. The primary financial statements are the income statement , balance sheet , and statement of cash flows.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

OCTOBER 7, 2023

Under the accrual basis, revenue is recognized when earned and expenses when incurred. The accrual basis involves more complex accounting, but results in more accurate financial statements. The accrual basis involves more complex accounting, but results in more accurate financial statements.

Accruals 40

Accruals General Ledger Accounting Accounting 40

Accounting Tools

JUNE 16, 2023

The intent of adding these entries is to correct errors in the initial version of the trial balance and to bring the entity's financial statements into compliance with an accounting framework , such as Generally Accepted Accounting Principles or International Financial Reporting Standards.

General Ledger 74

General Ledger Financial Statements Accruals Bookkeeping 74

Accounting Tools

JUNE 20, 2023

There are several types of accounting that range from auditing to the preparation of tax returns. Financial Accounting Those in the financial accounting field are concerned with the aggregation of financial information into external reports. There are multiple tax specialties, tracking toward the tax manager position.

Accounting 75

Accounting Accounting Financial Statements CPA 75

Accounting Tools

JULY 25, 2023

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is the Purpose of the Statement of Cash Flows? The purpose of the statement of cash flows is to present cash inflows and outflows for a reporting period to the reader of the report.

Accruals 40

Accruals Financial Statements Tax Accounting 40

Accounting Tools

MAY 21, 2023

The general ledger is then used to create financial statements for the business. This information may be accessed by the external auditors as part of their year-end investigation of a company's financial statements and related systems. It is frequently used to record complex transactions, or several transactions at once.

General Ledger 75

General Ledger Financial Statements Accruals Payroll 75

Counto

MAY 3, 2024

Choosing the right Fiscal Year-End (FYE) is more than just a date on the calendar—it’s a strategic decision that affects everything from compliance and tax planning to operational effectiveness. Operational Efficiency: Consider how the change will impact your operational cycle, including budgeting, tax planning, and external audits.

Financial Reporting 52

Financial Reporting AR Accruals Tax 52

Accounting Tools

OCTOBER 21, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is EBIT? The EBIT acronym stands for Earnings Before Interest and Taxes ; by removing interest and taxes from net income, the financing aspects of an entity are separated from its operations.

Financial Analysis 40

Financial Analysis Financial Statements Accruals Tax 40

Accounting Tools

FEBRUARY 16, 2024

The formula is: (Sales – (Direct materials + Direct Labor + Overhead)) ÷ Sales = Gross profit ratio Net Profit Ratio The net profit ratio subtracts all expenses in the income statement from sales, and then divides the result by sales. This is used to determine the amount of earnings generated in a reporting period, net of income taxes.

Accruals 75

Accruals Financial Statements Accounts Receivable Accounts Receivable 75

Less Accounting

MAY 9, 2023

Once you’ve cleaned your bookkeeping, your business will be better prepared for growth, tax season, and investment opportunities. Take a look at this bookkeeping cleanup checklist to get all your financial ducks in a row. This step is crucial to getting accurate information for your financial reports.

Bookkeeping 98

Bookkeeping Accruals Reconciling Accounting Software 98

Less Accounting

SEPTEMBER 25, 2023

Accounting for small businesses is the documenting, tracking, and evaluation of the financial health of a business. Proper accounting can prepare a business for tax season , growth opportunities, and help navigate external and internal factors that could affect a business’s profitability.

Small Business Accounting 52

Small Business Accounting Accruals Bookkeeping Accounting 52

Accounting Tools

AUGUST 5, 2023

Related Courses The Income Statement The Interpretation of Financial Statements The Statement of Cash Flows Profit is not the same as cash. The supplier problem is especially acute in the areas of employee compensation, payroll tax remittances, rent payments, and insurance payments.

Accruals 40

Accruals Financial Statements Payroll Tax 40

Accounting Tools

APRIL 13, 2023

This principle also has an impact on the timing of income taxes. In the example, income taxes will be underpaid in the current month, since expenses are too high, and overpaid in the following month, when expenses are too low. Otherwise, the auditors will refuse to render an opinion on the financial statements.

Financial Statements 40

Financial Statements Accruals Bookkeeping Auditing 40

Accounting Tools

JULY 12, 2023

The allocation of factory burden is required when a business is generating financial statements under the accrual basis of accounting. The allocated costs are eventually charged to expense when the associated units of production are sold.

Accruals 40

Accruals Financial Statements Cost Accounting Tax 40

Accounting Tools

AUGUST 31, 2023

An alternative way to calculate the cash flow of an entity is to add back all non-cash expenses (such as depreciation and amortization ) to its net after-tax profit, though this approach only approximates actual cash flows. This is one of the three financial statements (the other two are the income statement and balance sheet ).

Accruals 75

Accruals Financial Statements Accounts Payable Accounts Payable 75

Accounting Tools

MAY 21, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is EBITDA? EBITDA is a contraction of earnings before interest, taxes, depreciation , and amortization. As such, it should not be included in the financial statements or accompanying footnotes issued by a business.

Financial Statements 40

Financial Statements Financial Analysis Accruals Tax 40

Accounting Tools

JULY 28, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Net Income Margin? Net income margin is the net after-tax income of a business, expressed as a percentage of sales. It is used in ratio analysis to determine the proportional profitability of a business.

Financial Analysis 40

Financial Analysis Accruals Financial Statements Billing 40

Accounting Tools

JUNE 8, 2023

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is Cash from Operating Activities? Cash from operating activities is the aggregate amount of cash flow reported in the operating activities section of the statement of cash flows of a business.

Financial Statements 40

Financial Statements Accruals Tax Accounting 40

Nanonets

SEPTEMBER 21, 2023

In simple terms, the accounting cycle refers to the series of steps that businesses follow to record and process financial transactions, from identifying the transactions to preparing financial statements. The accounting cycle is a series of steps that businesses follow to record and process financial transactions.

General Ledger 40

General Ledger Financial Statements Accounting Accounting 40

Counto

FEBRUARY 22, 2024

Record Keeping: Keeping meticulous records of payroll, invoices, bank statements, and financial statements is essential for monitoring your company’s financial health and compliance. Open a Business Bank Account: Separating personal and business finances streamlines accounting and enhances financial transparency.

Accounting 52

Accounting Accounting Accruals Accounting Software 52

Accounting Tools

OCTOBER 11, 2023

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is the Direct Method? For example, the statement may include line items for changes in the ending balance of accounts receivable , inventory , and accounts payable. What is the Indirect Method?

General Ledger 40

General Ledger Cash Collection Accruals Financial Statements 40

Accounting Tools

JUNE 19, 2023

Related Courses The Income Statement The Interpretation of Financial Statements What is Operating Profit? Operating profit is the income earned from the core operations of a business, excluding any financing or tax-related issues. The interest expense and income taxes are excluded from the calculation.

Accruals 40

Accruals Financial Statements Tax Accounting 40

Less Accounting

JUNE 15, 2023

From setting up your accounting system to analyzing your financial statements, we’ve got you covered. Key Takeaways Understanding accounting principles and financial statements is crucial for construction businesses. Accounting principles are the foundation of your financial statements.

Financial Statements 52

Financial Statements Accounting Accounting Budgeting 52

Accounting Tools

APRIL 28, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is the Net Income Formula? Instead, other comprehensive income is placed after the net income figure in the income statement.

Financial Analysis 40

Financial Analysis Accruals Financial Statements Tax 40

Accounting Tools

MARCH 24, 2023

Interim reporting is the reporting of the financial results of any period that is shorter than a fiscal year. Interim reporting is usually required of any company that is publicly held , and it typically involves the issuance of three quarterly financial statements each year. Income statement. Accounting policies.

Financial Statements 40

Financial Statements Accruals Tax Auditing 40

Accounting Tools

APRIL 14, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements The profit formula is the calculation used to determine the percentage profit generated by a business. This issue is only a problem if the accrual basis of accounting is used. One-time revenues and expenses.

Financial Analysis 40

Financial Analysis Accruals Financial Statements Tax 40

Accounting Tools

MAY 14, 2023

The invoice describes the goods or services that have been sold to the customer, the amount it owes the seller (including sales taxes and freight charges), and when it is supposed to pay. If the seller is operating under the more widely-used accrual basis of accounting , it records transactions irrespective of any changes in cash.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables General Ledger 75

Accounting Tools

DECEMBER 10, 2023

What is the Accrual Basis of Accounting? The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred. The accrual basis of accounting is advocated under both generally accepted accounting principles ( GAAP ) and international financial reporting standards ( IFRS ).

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Nanonets

MAY 6, 2024

This process includes verifying transactions against payroll registers and tax reports, ensuring that tax withholdings match figures reported to tax authorities, accounting for accruals and adjustments related to payroll expenses, and verifying the accurate calculation and recording of employee benefits and deductions.

General Ledger 52

General Ledger Reconciling Data Entry Payroll 52

Jetpack Workflow

MARCH 23, 2023

While the year-end closing process is familiar to most due to tax reporting, it’s not the only necessary period-end process a business should have. The month-end closing process is just as essential, especially if you want to avoid the headache and overwhelm of last-minute error corrections spanning months during tax seasons.

Reconciling 52

Reconciling AR AP Payroll 52