Accounting Tools

APRIL 25, 2024

Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Example of a Downward Demand Spiral Tsunami Products manufactures several types of shower heads. After a detailed analysis of margins, the company’s cost accountant recommends to management that the dual shower head model be cancelled.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

MAY 4, 2024

The bank balance is the balance reported by the bank on a firm’s bank account at the end of the month. The book balance is the in-house general ledger record of the same account. What is the Bank Balance? What is the Book Balance? Deposits in transit. Unrecorded fees. Unrecorded fees.

General Ledger 40

General Ledger Bank Reconciliation Deposits Reconciling 40

Accounting Tools

APRIL 7, 2024

These costs are then charged to the cost of goods sold as the units are sold over time. Related AccountingTools Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is Not Included in Manufacturing Overhead? it is also possible to use multiple allocation methods.

Cost Accounting 75

Cost Accounting Financial Statements Financial Reporting Auditing 75

Accounting Tools

MAY 13, 2024

If the charges of service departments are assigned to the production area, these cost allocations will probably be included in a cost pool , and then allocated to goods produced. Related Articles Cost Allocation Method Reciprocal Method Reciprocal Services Sequential Method Information technology.

Purchase Order 40

Purchase Order Billing Cost Accounting Budgeting 40

Accounting Tools

MAY 1, 2024

Accounting for Supplies on Hand If the cost of these supplies is minor, the cost may be charged to expense as incurred. If the cost of supplies is more substantial, it can be initially classified as an asset , and then charged to expense as supplies on hand are consumed. Related Article Supplies Expense

Accounting 40

Accounting Accounting 40

Counto

FEBRUARY 5, 2024

The GST rate for transactions spanning a rate hike is determined by the payment date or the date of services performed/goods delivered, rather than the invoice date (or posting date in the respect of a reverse charge). Therefore, you should charge 8% GST on the supply. What are the transitional guidelines for transactions?

Invoicing 98

Invoicing Tax Payroll Collections 98

Accounting Tools

MAY 16, 2024

Related AccountingTools Courses Fixed Asset Accounting How to Audit Fixed Assets Presentation of Tangible Assets Tangible assets are classified as fixed assets, and so appear in the long-term assets section of a firm’s balance sheet. Related Articles Asset Classification Examples of Assets Types of Assets

Auditing 52

Auditing Accounting Accounting 52

Accounting Tools

MAY 13, 2024

Related AccountingTools Courses Accounting for Inventory How to Audit Inventory Why Inventory Valuation is Important Inventory valuation is important for the reasons noted below. Do not add any administrative or selling costs to the cost of inventory. Thus, inventory valuation has a major impact on reported profit levels. Raw materials.

Tax 75

Tax Financial Reporting Auditing Accounting 75

Accounting Tools

APRIL 16, 2024

To cook the books involves using accounting trickery to enhance an organization’s financial results. Incorrect Expense Reserves A more subtle cooking the books practice is setting up expense reserves , such as the allowance for doubtful accounts , that do not reflect the actual loss rate. What is Cook the Books?

Auditing 74

Auditing Invoicing Accounting Accounting 74

Accounting Tools

OCTOBER 7, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook Cost Accounting Fundamentals What is a Deferred Expense? The cost is recorded as an asset until such time as the underlying goods or services are consumed; at that point, the cost is charged to expense. In this case, the cost of the interest is a deferred expense.

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting Software 75

Accounting Tools

MAY 13, 2024

Related AccountingTools Courses Fixed Asset Accounting How to Audit Fixed Assets Example of the Mid-Month Convention Failsafe Containment acquires a new warehouse for its nuclear reactor containment vessel production facility on January 27. Related Articles Mid-Quarter Convention Mid-Year Convention What is the Mid-Month Convention?

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 7, 2023

Related Courses Sales and Use Tax Accounting Sales tax is a state and local tax paid by the buyer of goods and services at the point of sale. There are three different scenarios involving sales taxes, and the accounting treatment varies in each scenario. It is derived by multiplying the price paid by the sales tax rate.

Tax 75

Tax Collections Accounting Accounting 75

Accounting Tools

MAY 13, 2024

A fixed asset can also be fully depreciated if an impairment charge is recorded against the original recorded cost, leaving no more than the salvage value of the asset. Thus, full depreciation can occur over time, or all at once through an impairment charge. No additional depreciation is required for the asset. Depreciation.

Accounting 40

Accounting Accounting Financial Statements Expense Reports 40

Accounting Tools

JANUARY 26, 2024

If there is no cause-and-effect relationship, then charge the cost to expense at once. This is one of the most essential concepts in accrual basis accounting , since it mandates that the entire effect of a transaction be recorded within the same reporting period. What is the Matching Principle? The bonus is paid in the following year.

Accruals 75

Accruals Bookkeeping Financial Statements Invoicing 75

Accounting Tools

MARCH 26, 2024

What is a Bank Charge? A bank charge is a fee assessed to an account by a financial institution. Accounting for Bank Charges A business that incurs bank charges will usually record them as expenses as part of its monthly bank reconciliation process.

Bank Reconciliation 40

Bank Reconciliation Deposits Auditing Accounting 40

Accounting Tools

MAY 21, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Full Charge Bookkeeper? A full-charge bookkeeper is the same as a bookkeeper , except that the "full charge" part of the title designates the person as being solely responsible for accounting.

Bookkeeping 75

Bookkeeping Petty cash Payroll Reconciling 75

Accounting Tools

MARCH 29, 2024

Accounting for Freight In For accounting purposes, the recipient adds the cost of freight in to the cost of the received goods. When the related inventory is sold, the freight in cost is charged to the cost of goods sold. What is Freight In?

Accounting 40

Accounting Accounting 40

Accounting Tools

MAY 7, 2024

The flow of costs concept is less applicable in a services firm, where most costs are incurred and charged to expense at the same time. Related Articles Cost Accounting Basics Cost Concepts in Decision Making Cost Structure The Functions of Managerial Accounting

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Cloud Accounting Podcast

MAY 9, 2024

The SEC charged Trump's audit firm with a massive fraud – 1,500 fake filings over 2.5 We're also talking about the potential of AI tools like Claude and ChatGPT to automate various accounting and business tasks, the controversial Corporate Transparency Act's beneficial ownership reporting requirements, and the possibility of its repeal.

Auditing 49

Auditing CPA Accounting Accounting 49

Accounting Tools

DECEMBER 23, 2023

If the underlying asset is to be used over a long period of time, the expense takes the form of depreciation , and is charged ratably over the useful life of the asset. If the expense is for an immediately consumed item, such as a salary , then it is usually charged to expense as incurred. Debit to expense, credit to accounts payable.

Accruals 75

Accruals Bookkeeping Accounts Payable Accounts Payable 75

Accounting Tools

APRIL 14, 2024

There are two types of supplies that may be charged to expense, which are noted below. They are usually charged to expense as incurred, in which case the supplies expense account is included within the cost of goods sold category on the income statement.

Accruals 40

Accruals Accounts Payable Accounts Payable Accounting 40

Accounting Tools

NOVEMBER 5, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What are the Most Common Depreciation Methods? Depreciation is used to gradually charge the book value of a fixed asset to expense. There are several methods of depreciation, which can result in differing charges to expense in any given reporting period.

Record Keeping 75

Record Keeping Auditing Tax Accounting 75

Accounting Tools

DECEMBER 22, 2023

Thus, if a business is constructing a custom-made machine, the cost of the sheet metal used in the construction must be accumulated and charged to the job. Typically, materials are kitted for a job in the warehouse, and are charged to a specific job at that time. Some customers only allow certain costs to be charged to their jobs.

Billing 75

Billing Computation Cost Accounting Accounting 75

Accounting Tools

APRIL 8, 2024

Impairment testing is to be conducted at regular intervals, so a business could experience a series of impairment charges against a single asset. Accounting for an Impaired Asset When an asset is impaired, you should reduce the book value of the asset to its market value, which creates a loss in the amount of the difference.

Accounting 40

Accounting Accounting 40

Nanonets

JANUARY 29, 2024

  In this article, we guide you through the credit card reconciliation process in QuickBooks, addressing common issues and providing useful tips to streamline the procedure. ' Then, select the account you wish to reconcile. For this demonstration, we'll be using an account linked to an employee credit card.

QuickBooks 52

QuickBooks General Ledger Reconciling Deposits 52

Accounting Tools

JULY 10, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook Property Management Accounting Straight-line rent is the concept that the total liability under a rental arrangement should be charged to expense on an even periodic basis over the term of the contract. Related Articles How to Account for Accrued Rent

Billing 75

Billing Bookkeeping Management Accounting Accounting 75

Accounting Tools

MARCH 29, 2024

A debit memo is issued by a seller to a customer, notifying it of an additional billing to the customer’s account. This document is useful for clarifying the nature of any corrections to an existing billing, or any additional charges or penalties being applied by the seller. What is a Debit Memo? These variations are explained below.

Billing 40

Billing Deposits Invoicing Accounts Receivable 40

Accounting Tools

JULY 16, 2023

Related Courses Accounting for Intangible Assets Intangible Asset Valuation The Balance Sheet An intangible asset is a non-physical asset that has a multi-period useful life. Also, the accounting standards state that a sudden loss in the value of an asset can trigger an impairment charge, which can adversely impact profits.

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

MAY 7, 2024

What is Functional Accounting? Functional accounting is a reporting format for financial results that clusters results based on the functions performed. Thus, functional accounting is a form of responsibility accounting , since the manager of a department is responsible for the expenses charged to his or her department.

Accounting 52

Accounting Accounting Financial Statements 52

Accounting Tools

JANUARY 20, 2024

What is a Deferred Charge? A deferred charge is an expenditure that is paid for in one accounting period, but for which the underlying asset will not be entirely consumed until one or more future periods have been completed. Consequently, a deferred charge is carried on the balance sheet as an asset until it is consumed.

Reconciling 40

Reconciling Auditing Accounting Accounting 40

Accounting Tools

APRIL 29, 2024

Related AccountingTools Courses Accounting for Inventory Cost Accounting Fundamentals Standard Costs and Variance Analysis Advantages of Standard Costs There are multiple advantages to using standard costs. It is much easier to charge standard costs to jobs than to charge actual costs to them. How are Standard Costs Used?

Budgeting 40

Budgeting Cost Accounting Billing Accounting 40

Accounting Tools

APRIL 25, 2024

These items are stated in an account reconciliation , so that the balance from one source is adjusted by reconciling items to arrive at the balance from the other source. These are fees charged by an entity’s bank, such as check processing fees, that have not yet been recorded by the firm in its accounting records.

Reconciling 40

Reconciling General Ledger Bank Reconciliation Account Reconciliation 40

Accounting Tools

MAY 18, 2024

Given the immateriality of by-product revenues and costs, byproduct accounting tends to be a minor issue. If a company incurs costs prior to a split-off point, it must allocate them to products, under the dictates of both generally accepted accounting principles and international financial reporting standards.

Cost Accounting 52

Cost Accounting Financial Reporting Accounting Accounting 52

Accounting Tools

MAY 19, 2023

Related Courses Cost Accounting Fundamentals Cost Management Guidebook What is a Deferred Cost? A deferred cost is a cost that you have already incurred, but which will not be charged to expense until a later reporting period. Immediate charge-off is only practiced when the impact on the financial results of a business is immaterial.

Financial Reporting 74

Financial Reporting Cost Accounting Accounting Accounting 74

Accounting Tools

MAY 15, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook The Difference Between the Direct Write-Off and Allowance Methods Under the direct write-off method , a bad debt is charged to expense as soon as it is apparent that an invoice will not be paid.

Reconciling 75

Reconciling Invoicing Accounts Receivable Accounts Receivable 75

Accounting Tools

NOVEMBER 24, 2023

Later, when it is expected that they will be charged to expense within one year, they are reclassified at that time as short term assets. Related Articles Net Current Assets Operating Current Assets Other Current Assets What is a Short Term Asset? Terms Similar to Short Term Asset A short term asset is the same as a current asset.

Accounts Receivable 72

Accounts Receivable Accounts Receivable Account Receivables Accounting 72

Nanonets

JANUARY 28, 2024

QuickBooks is a handy tool to help you reconcile your accounts without using any external tools.    In this article, we walk through the reconciliation process in QuickBooks, address common issues, and provide useful tips. Choose the account you want to reconcile. Enter the data, amount, and the expense account.

QuickBooks 52

QuickBooks Bank Reconciliation Reconciling Deposits 52