Accounting Tools

AUGUST 27, 2023

What is a Credit? A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. It is positioned to the right in an accounting entry. A credit is recorded on the right side of a T account.

Financial Accounting 75

Financial Accounting Accounting Accounting 75

Accounting Tools

MAY 10, 2024

Bad debt expense is the amount of an account receivable that cannot be collected. To some degree, the amount of this expense reflects the credit choices made by the seller when extending credit to customers. This is a debit to the bad debt expense account and a credit to the accounts receivable account.

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

MARCH 26, 2024

What are Credit Sales? Credit sales are purchases made by customers for which payment is delayed. The use of credit sales is a key competitive tool in some industries, where longer payment terms can be used to attract additional customers. A downside of credit sales is the risk of bad debt loss.

Collections 40

Collections Billing Accounting Accounting 40

Accounting Tools

NOVEMBER 8, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is a Disposal Account? A disposal account is a gain or loss account that appears in the income statement , and in which is recorded the difference between the disposal proceeds and the net carrying amount of the fixed asset being disposed of.

Accounting 75

Accounting Accounting Auditing 75

Accounting Tools

OCTOBER 28, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Account Balance? An account balance is the current total in an account. General Ledger Account In accounting, the account balance is the current residual balance in an account.

General Ledger 75

General Ledger Accounting Accounting Account Reconciliation 75

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. An example entry for this situation is noted next, for a $400 purchase of office supplies that was made on credit. Related Article Supplies Expense

Accounting 40

Accounting Accounting 40

Accounting Tools

DECEMBER 22, 2023

Customer Advance Due to Bad Credit The seller is unwilling to advance credit to the customer and so demands payment in advance. This is most common when the amount of the sale is quite large, since extending credit would represent a substantial risk for the seller. Possible reasons for a customer advance are noted below.

Accounting 75

Accounting Accounting Reconciling Bookkeeping 75

oAppsNet

MAY 9, 2024

Accounts receivable is a fundamental concept in business finance, serving as an essential component of a company’s working capital and cash flow management. This article aims to demystify the accounts receivable process, elucidating its significance, operational mechanisms, challenges, and optimization strategies.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

OCTOBER 20, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets Accounting for the sale of land differs from the accounting for the sale of any other type of fixed asset , because there is no accumulated depreciation expense to remove from the accounting records.

General Ledger 75

General Ledger Accounting Accounting Auditing 75

oAppsNet

MAY 14, 2024

Streamlining accounts receivable collections is a strategic imperative for businesses to enhance their cash flow and operational efficiency. Understanding the Importance of Streamlined Collections Streamlined accounts receivable collections are vital for maintaining a healthy cash flow, which is the lifeblood of any business.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Collections 52

Accounting Tools

MAY 2, 2024

The bank will then enter a block flag into its accounting system that will reject the check when it is presented for payment. The bank charges a fee for this service, which is deducted from the entity's checking account. This will result in a debit to the cash (asset) account and a credit to the accounts payable (liability) account.

Accounts Payable 40

Accounts Payable Accounts Payable Accounting Accounting 40

Accounting Tools

MAY 3, 2024

The transaction number, account number, customer name, invoice number, and sales amount are typically stored in the sales journal for each sale transaction. When a transaction is recorded, the accounts receivable account is debited, while the sales account is credited.

General Ledger 40

General Ledger Invoicing Bookkeeping Accounts Receivable 40

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

Counto

MARCH 6, 2024

Ways to Get a High Business Credit Score in Singapore Similar to personal credit scores, business credit scores provide a snapshot of your company’s creditworthiness and financial health. The majority of small businesses require a minimum score of 75 to access credit with favourable interest rates.

Payroll 52

Payroll Tax Billing Invoicing 52

Accounting Tools

JUNE 6, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Negative Balance? A negative balance occurs when the ending balance in an accounting record is the reverse of the expected normal balance. This expectation is based on an account's classification within the chart of accounts.

Bookkeeping 72

Bookkeeping Accounts Payable Accounts Payable Financial Accounting 72

Accounting Tools

OCTOBER 25, 2023

Related Courses Bookkeeping Guidebook How to Audit Equity New Controller Guidebook What is the Accounting for Reserves? Reserve accounting is quite simple - just debit the retained earnings account for the amount to be segregated in a reserve account, and credit the reserve account for the same amount.

Accounting 75

Accounting Accounting Financial Statements Bookkeeping 75

Accounting Tools

JULY 18, 2023

Each example journal entry states the topic, the relevant debit and credit , and additional comments as needed. When goods or services are sold on credit, debit accounts receivable and credit sales. If a sale is for cash, then the debit is to the cash account instead of the accounts receivable account.

Petty cash 75

Petty cash Accounts Payable Accounts Payable Payroll 75

Accounting Tools

FEBRUARY 26, 2024

A general ledger is the master set of accounts that summarize all transactions occurring within an entity. The general ledger is comprised of all the individual accounts needed to record the assets , liabilities , equity , revenue , expense , gain , and loss transactions of a business. What is a Trial Balance? Auditor usage.

General Ledger 75

General Ledger Bookkeeping Financial Statements Auditing 75

Accounting Tools

SEPTEMBER 7, 2023

Related Courses Closing the Books The Soft Close The Year-End Close What is the Income Summary Account? The income summary account is a temporary account into which all income statement revenue and expense accounts are transferred at the end of an accounting period. As such, the account is not strictly necessary.

General Ledger 75

General Ledger Accounting Accounting Account Reconciliation 75

Nanonets

JANUARY 29, 2024

QuickBooks is one of the most widely used apps for bookkeeping, and it offers a convenient way to reconcile credit cards without needing external tools.    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.

QuickBooks 52

QuickBooks General Ledger Reconciling Deposits 52

Accounting Tools

JULY 8, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook The Balance Sheet When a cash dividend is declared by the board of directors , debit the retained earnings account and credit the dividends payable account, thereby reducing equity and increasing liabilities.

Accounting 75

Accounting Accounting Financial Statements Bookkeeping 75

Accounting Tools

FEBRUARY 8, 2024

What is a Credit Account? A credit account is an open account that a buyer has with a supplier or store, under which the buyer can make purchases and pay for them at a later date. This is essentially a no-interest accounts receivable arrangement.

Accounting 40

Accounting Accounting Collections Accounts Receivable 40

Accounting Tools

FEBRUARY 28, 2024

Why Revenues are Credited The reason why revenues are credited is that they increase the shareholders' equity of a business, and shareholders' equity has a natural credit balance. Thus, an increase in equity can only be caused by transactions that are credited.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Bookkeeping 40

Accounting Tools

MAY 15, 2024

Offering costs are those expenditures made to pay for the accounting, legal and underwriting activities associated with the issuance of securities to investors. Other offering costs cover the printing of prospectuses , exchange listing fees, registration fees, and initial credit rating agency fees (if an offering involves the sale of bonds ).

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

DECEMBER 28, 2023

A trial balance is an accounting report that states the ending balance in each general ledger account. This means that it states the ending balance for each asset, liability, equity, revenue, gain, and loss account in an accounting system. A trial balance lists the ending balance in each general ledger account.

General Ledger 75

General Ledger Record Keeping Financial Statements Auditing 75

Accounting Tools

MARCH 26, 2024

What is Direct Credit? A direct credit is an electronic transfer of funds through the ACH (Automated Clearing House) system. The payment is initiated by the payer , which sends funds directly into the bank account of the payee. Direct credits are commonly used to make periodic compensation payments to employees.

Deposits 40

Deposits Accounting Accounting 40

Accounting Tools

MAY 13, 2024

Conversely, a low liability turnover ratio (usually in relation to accounts payable ) is considered good, since it implies that a company is taking the longest possible amount of time in which to pay its suppliers , and so retains its cash for a longer period of time.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Counto

FEBRUARY 5, 2024

How Should I Calculate GST for Services Paid via Credit Card with Instalment Arrangements? Suppose your business provides training courses, and a customer registers and pays the full course fees via credit card on 15th December 2023, with the course scheduled to commence on or after 1st January 2024.

Invoicing 98

Invoicing Tax Payroll Collections 98

Accounting Tools

MAY 10, 2024

Under the cash basis of accounting , revenues are recorded when cash is received from a customer in payment of these items. Under the accrual basis of accounting , revenues are recorded when goods and services are delivered to customers. Revenues are the fees generated from the sale of goods and services.

Accruals 40

Accruals Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

APRIL 9, 2024

A revaluation surplus is an equity account in which is stored any upward changes in the value of capital assets that exceed its prior book value. This surplus is only used when you are following the Revaluation Model to account for fixed assets. What is a Revaluation Surplus?

Financial Reporting 40

Financial Reporting Auditing Accounting Accounting 40

Accounting Tools

MAY 10, 2024

What are Asset Accounts? Asset accounts store monetary information about a company’s resources. Assets can be subdivided into many accounts , depending on their nature and assumed holding periods. The ending balances in these accounts roll forward into the beginning balances for the following year. Bank deposits.

Petty cash 75

Petty cash Accounting Accounting Accounts Receivable 75

Accounting Tools

FEBRUARY 12, 2024

What is a Credit Sweep? A credit sweep is an arrangement between a business and its bank, where the bank automatically uses all excess funds in a deposit account to reduce the firm's outstanding line of credit.

Deposits 40

Deposits Accounting Accounting 40

Accounting Tools

MAY 2, 2024

Purchase discounts lost is a general ledger account that contains the amounts a business did not save through its failure to take early payment discounts offered by suppliers. The purchase discounts lost account is only used when a business records its accounts payable using the net method.

General Ledger 40

General Ledger Accounts Payable Accounts Payable Financial Statements 40

Accounting Tools

JULY 28, 2023

This information may also be noted in the issuer’s articles of incorporation. Accounting for No Par Value Stock When a company sells no par value stock to investors, it debits cash received and credits the common stock account. Related Articles Capital in Excess of Par The Difference Between Par and No Par Value Stock

Corporate Finance 76

Corporate Finance Accounting Accounting 76

Accounting Tools

JUNE 20, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Normal Account Balance? A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts.

Accounting 75

Accounting Accounting Account Reconciliation Reconciling 75

Accounting Tools

MAY 3, 2024

Here are several examples: Line of credit. Most lines of credit for smaller businesses are secured liabilities; lenders may insist on using all of a firm’s assets as collateral on these loans, though they may only require that its accounts receivable and inventory be used.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

APRIL 14, 2024

What is the Schedule of Accounts Receivable? The schedule of accounts receivable is a report that lists all amounts owed by customers. How to Use a Schedule of Accounts Receivable There are several uses for the receivables schedule, which are noted below. Related Article Accounts Receivable Aging

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables Accounting 52