Accounting Tools

MARCH 8, 2024

A contra inventory account is a general ledger account that is paired with the inventory account, and which contains a negative balance that represents a reserve for obsolete or damaged goods. Another case is when inventory is so subject to spoilage that older items will probably be thrown out before they could impact the contra account.

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Accounting Tools

MARCH 20, 2024

Here are several examples: Warranty reserve. If so, it may not be possible to accurately derive the probability of bonus payouts until well into the year, so the accountant must derive an estimated liability in the meantime. This results in an accrued expense that appears within the current liabilities section of the balance sheet.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 10, 2023

A more mature company that does not need its cash reserves to fund additional growth is the most likely to issue dividends to its investors. Conversely, a rapidly-growing company requires all of its cash reserves (and probably more, in the form of debt ) to fund its operations, and so is unlikely to issue a dividend.

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Corporate Finance Accounting Accounting 74

Xero

AUGUST 17, 2022

But then, abruptly, the Federal Reserve announced that actually, we are in a recession , folks. We see business owners and accountants as people, not numbers, and that’s something that everyone here can use as a daily rubric, whether working on the product or writing articles. You know who probably knows some great people?

XERO 206

XERO Deposits Bookkeeping Payroll 206

Accounting Tools

JULY 23, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is a Bad Debt Reserve? The bad debt reserve is a provision for the estimated amount of bad debt that is likely to arise from existing accounts receivable. The bad debt reserve is designed to be an offset only to the trade receivables account.

Accruals 40

Accruals Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

OCTOBER 7, 2023

A deferred expense is initially recorded as an asset, so that it appears on the balance sheet (usually as a current asset , since it will probably be consumed within one year). This approach reserves only larger transactions for deferral treatment. Related Articles Incurred Cost Unexpired Cost

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting Software 75

Accounting Tools

OCTOBER 21, 2023

Unconditional Pledge When a donor commits to a pledge without reservation, the nonprofit receiving the funds records the pledge as revenue and an account receivable. If the probability that a condition will not be fulfilled is remote, the pledge can be treated as an unconditional pledge. The variations are noted below.

Accounting 76

Accounting Accounting Accounts Receivable Accounts Receivable 76

Accounting Tools

AUGUST 6, 2023

This estimate is used in an accrual-basis business where reserves are set up in contra accounts to be paired with and offset various asset accounts. Each time bucket is usually in 30-day increments, so the 31-60 day bucket, the 61-90 day bucket, and the 90+ day bucket show those invoices with increasing probabilities of nonpayment.

Accruals 40

Accruals Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

NOVEMBER 1, 2023

If the financial circumstances of these borrowers declines, the following issues may arise that require accounting treatment: Loan Impairment A loan is considered to be impaired when it is probable that not all of the related principal and interest payments will be collected. Related Articles Troubled Debt Restructuring Accounting

Accounting 40

Accounting Accounting Collections 40

Accounting Tools

JUNE 6, 2023

For example, a business could offer a lower price that is nonrefundable and must be paid in advance, which is intended to block out business travelers who are more likely to change their reservations at the last minute.

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Accounting Tools

OCTOBER 8, 2023

Reporting of the cash realizable balance is required under the accrual basis of accounting , since a reporting business must report a reserve for its estimated uncollectible receivables. Related Articles Accounts Receivable Accounting Accounts Receivable Analysis How to Estimate Uncollectible Receivables

Accruals 40

Accruals Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

NOVEMBER 7, 2023

Thus, these excess tax deductions or tax credits are carried back first, with any remaining amounts being reserved for use in future periods. A deferred tax asset can be realized for a carryforward, but possibly with an offsetting valuation allowance that is based on the probability that some portion of the carryforward will not be realized.

Tax 75

Tax Financial Statements Accounting Accounting 75

Accounting Tools

OCTOBER 3, 2023

This is not necessarily the case in reality, since some departments have accounts for which they are the only probable users. Related Articles 3-Digit Chart of Accounts 7-Digit Chart of Accounts How to Improve Your Chart of Accounts Chart of Accounts Numbering Chart of Accounts Overview

Petty cash 40

Petty cash Accounting Accounting Computation 40

Accounting Tools

JUNE 10, 2023

A financially healthy business that does not pay dividends may have a large proportion of quick assets on its balance sheet , probably in the form of marketable securities and/or cash. Related Articles Asset Accounts Asset Classification Asset Recognition Criteria Asset Valuation Examples of Assets Operating Current Assets

Financial Statements 40

Financial Statements Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

MARCH 25, 2024

The only other case in which predatory pricing can be used is when a small company with a large amount of startup capital is willing to burn through its cash reserves with a predatory pricing strategy. Related Articles Loss Leader Pricing Marginal Cost Pricing Penetration Pricing Pricing Strategies

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Accounting Tools

MAY 16, 2023

The term is usually applied to government budgets, where revenues are relatively fixed and funding reserves are minimal, so expense levels must be tightly controlled. A balanced budget occurs when planned revenues match or exceed the amount of planned expenses.

Budgeting 40

Budgeting Tax Accounting Accounting 40

Accounting Tools

JULY 25, 2023

If actual experience differs, then management adjusts its estimation methodology to bring the reserve more into alignment with actual results. If the allowance is less than the amount of these overdue receivables, the allowance is probably insufficient.

Accounting 40

Accounting Accounting Accounts Receivable Accounts Receivable 40

Accounting Tools

OCTOBER 11, 2023

A company with a shorter conversion cycle than its peer group probably has reached this point due to a continual review of the entire process over a long period of time. This is a particular problem for nonprofit entities, since they usually have small cash reserves.

Collections 40

Collections Bookkeeping Billing Invoicing 40

Accounting Tools

AUGUST 23, 2023

A better approach is to shift the high-turnover items to lower rack locations where moves can be more rapidly completed, and reserve the upper racks for slow-moving items. Related Articles Just-in-Time Inventory Just-in-Time Inventory Control The Advantages and Disadvantages of Just-in-Time Inventory

Record Keeping 40

Record Keeping Billing 40

Accounting Tools

SEPTEMBER 4, 2023

If cash balances are low, this can be an entirely acceptable strategy, since more active management of a small amount of cash will probably not glean a significantly larger return. This option works well if a company is too small or has too few cash reserves to actively manage its own cash.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

OCTOBER 13, 2023

In this case, it has drawn down its cash reserves in anticipation of making more money in the future from its investment. 1 The rapid increase in the amount of current assets indicates that the retail chain has probably gone through a fast expansion over the past few years and added both receivables and inventory.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

AUGUST 31, 2023

A further advantage of stable cash flows is having the ability to build a cash reserve, which it can draw upon during periods of financial hardship. The interest payments made also reduce its cash reserve, making the organization less financially viable. This imposes an interest cost on the business that reduces its overall profit.

Accruals 75

Accruals Financial Statements Accounts Payable Accounts Payable 75

Accounting Tools

JUNE 19, 2023

The following due diligence checklist is useful as a general list of items to investigate as part of an acquisition analysis, though the full range of questions will probably not be needed. If so, does it maintain a sufficient amount of inventory reserves to keep the company operating if there is a supply chain failure?

Financial Statements 73

Financial Statements Auditing Tax Accounts Payable 73

FinOps in Practice

AUGUST 9, 2023

This cost dataset is especially useful for those who prefer long-term commitments with Amazon purchasing AWS Reservations, such as Amazon EC2 or RDS Reserved Instances. To clarify, let us draw an analogy with a term you’ve probably heard of – MRR. The solution is fully available under Apache 2.0 on GitHub → [link] ?

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FinOps FinOps Accruals Billing 130

IMA's Count Me

JULY 16, 2023

So, as a quick background, I'm a former economist from The Federal Reserve. Which Coinbase was highly regulated, had oversight by the SEC. And, so, what I took from your comments is the point of this integration piece is probably what makes most people feel confident, more confident and more secure.

Financial Services 40

Financial Services Record Keeping Accounting Accounting 40

Accounting Tools

AUGUST 5, 2023

Thus, a business in a monopoly market with very steady cash flows could probably support a high debt load, whereas a firm operating in a competitive market with short product cycle times would probably find it risky to carry much debt at all. Instead, these ratio outcomes must be compared to the stability of an entity's cash flows.

Financial Statements 40

Financial Statements 40

Accounting Tools

SEPTEMBER 2, 2023

This can be done by having the S corporation borrow money (probably secured by company assets) and then distribute the borrowed funds to the shareholder. It is difficult for an S corporation to build up cash reserves, since its shareholders need distributions in order to pay taxes on the income that has been passed through to them.

Corporation Tax 40

Corporation Tax Payroll Tax Record Keeping 40

Cloud Accounting Podcast

MARCH 30, 2020

My conclusion, after doing this webinar and a bunch of research around it, is we're gonna peak in May, probably. I saw another article with a- and we talked about this cell phone data. I mean, you can read the article and tell me what you think. This is an article that was on Bloomberg. I don't see politicians doing that.

Accounting 40

Accounting Accounting Payroll Billing 40

Cloud Accounting Podcast

SEPTEMBER 7, 2020

This is Friday evening and probably when we're done recording, the feds will release some news about PPP loans. Probably spending some time on Facebook, going at each other on the political spectrum. David Leary: [00:13:33] Yeah, it's probably the exception, right? Blake Oliver: [00:03:53] It's nice you're doing a staycation.

CPA 40

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Cloud Accounting Podcast

APRIL 6, 2020

So, probably everybody asking for the full $10 million is getting all the attention and getting processed first. Here's an Accounting Today article called: Some Coronavirus Stimulus Checks May Not Arrive Until September." Probably information from your tax return and your Social Security number. It'll probably go up to 12.

Payroll 40

Payroll QuickBooks Tax Bookkeeping 40

Cloud Accounting Podcast

JUNE 1, 2020

at night, probably it's not the protest marching to the mall [crosstalk] Blake Oliver: [00:04:36] No, it wasn't protesters. There'll probably be some bill in that's a protest/riot-damage bill, or something in small businesses, which'll have tax implications. There's an article in Bloomberg about businesses are returning the money.

Tax 40

Tax Billing QuickBooks Payroll 40

Cloud Accounting Podcast

APRIL 27, 2020

Regardless of the stimulus, his company could have probably weathered the storm, he thinks, possibly. __ This episode of The Cloud Accounting Podcast is sponsored by AccountingSuite. Actually, there was a great article that I tweeted out. is probably the bigger question. Yes, Zoom fatigue is a really big thing, I know.

Tax 40

Tax Accounting Accounting Deposits 40

Cloud Accounting Podcast

AUGUST 3, 2020

David Leary: [00:10:18] There was an article about more fraud in the in the disaster loan program, not PPP program. The thing to take away from this article for me - it was in The Washington Post - was they're indicating there's widespread fraud. The article also talks about how they were overwhelmed. continue your article.

QuickBooks 40

QuickBooks XERO Bookkeeping Payroll 40

Cloud Accounting Podcast

JUNE 8, 2020

You've probably tried separate apps for texting, email, client portal, e-signatures, and file storage and realized that it just leads to chaos. There's another article I saw, where the amount of deduction you can take for a disaster is capped at 10 percent of your income. Did you read the article? I find that fascinating.

Tax 40

Tax XERO Payroll QuickBooks 40

Cloud Accounting Podcast

APRIL 19, 2020

trillion in loans to support the economy [link] - Federal Reserve 42:27 - Correction from Ep. I honestly- I think it's probably gonna hit 6 next week, and 6 the week after that. So, that 26-, 27-percent success rate is probably really high compared to most businesses that don't have an advisor. 169: It was Bird, not Lime!

Payroll 40

Payroll Bookkeeping QuickBooks Accounting 40

Cloud Accounting Podcast

AUGUST 17, 2020

David Leary: [00:09:25] That's right, so we're training them early now. Blake Oliver: [00:09:26] Anyway. David Leary: [00:09:26] We should probably get to the news, huh? They probably look at BigCommerce and laugh now, maybe, because they used to be kind of identical, and they were almost at equal footing before.

Payroll 40

Payroll Tax Accounting Accounting 40

Cloud Accounting Podcast

MAY 18, 2020

Blake Oliver: [00:03:16] Wow. David Leary: [00:03:17] Then, it was a lot of couples, so it's probably double that, right? So, they're probably looking for this kind of stuff to shut it down as quickly as possible because it would be really bad PR if this happened a lot. So, it was probably super-obvious.

Payroll 40

Payroll Billing Deposits Auditing 40