Accounting Tools

APRIL 17, 2024

Accounting for Direct Labor The cost of direct labor is charged to all units produced during the reporting period. These costs are then charged to the cost of goods sold, if the underlying finished goods are sold to customers within the reporting period. Related Article How to Calculate a Labor Rate

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

APRIL 16, 2024

Leave Books Open A common cooking the books practice is to leave the books open past the end of the month to record additional sales within the prior reporting period. Instead, recognition is delayed until the following period. This practice is easily detected by auditors , by examining transaction dates.

Auditing 74

Auditing Invoicing Accounting Accounting 74

Accounting Tools

MAY 7, 2024

Financial Statements Only Cover a Specific Period of Time A user of financial statements can gain an incorrect view of the financial results or cash flows of a business by only looking at one reporting period. A business reporting excellent financial results might be a failure in these other areas.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

MAY 10, 2024

Bond interest expense is the aggregate interest expense incurred during a reporting period for an organization’s bonds payable. This is the amortization of any premium or discount on issued bonds for the reporting period. The amount of this discount scheduled to be amortized in the current period is $20,000.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

MAY 4, 2024

An income statement shows the profit or loss generated by a business over a specific period of time. From left to right, the template includes description line items, followed by a column containing the period totals for the account aggregations that comprise each line item. The period totals are usually for a month, quarter, or year.

Financial Statements 52

Financial Statements Tax Expense Reports Payroll 52

Accounting Tools

MAY 10, 2024

Accordingly, Logger compiles $650,000 of costs on its balance sheet over the period of the project and then bills the client for the entire $700,000 fee associated with the project, recognizes the $650,000 of expenses, and recognizes a $50,000 profit. Logger’s management expects that the entire facility will be complete in just two months.

Collections 75

Collections Bookkeeping Billing Auditing 75

Accounting Tools

OCTOBER 21, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook What is an Accounting Period? An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements.

Financial Statements 75

Financial Statements Accounting Accounting Financial Reporting 75

Accounting Tools

APRIL 25, 2024

Rent expense is an account that lists the cost of occupying rental property during a reporting period. This expense is one of the larger expenses reported by most organizations, after the cost of goods sold and compensation expense. Related Articles Accrued Rent Expense Accrued Rent Liability What is Rent Expense?

Accruals 40

Accruals Expense Reports Accounting Accounting 40

Accounting Tools

FEBRUARY 13, 2024

If these reports are available, the calculation of dividends paid is as follows: Subtract the retained earnings figure in the ending balance sheet from the retained earnings figure in the beginning balance sheet. This calculation reveals the net change in retained earnings derived from activity within the reporting period.

Financial Statements 74

Financial Statements Accounting Accounting 74

Accounting Tools

FEBRUARY 11, 2024

A balance sheet lays out the ending balances in a company's asset , liability , and equity accounts as of the date stated on the report. The income statement presents the financial results of a business for a stated period of time. What is an Income Statement?

Financial Statements 75

Financial Statements Tax Accounting Accounting 75

Accounting Tools

OCTOBER 25, 2023

Interim financial statements are financial statements that cover a period of less than one year. They are used to convey information about the performance of the issuing entity prior to the end of the normal reporting year, and so are closely followed by investors. Related Articles Interim Period Interim Reporting

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

JANUARY 26, 2024

The matching principle requires that revenues and any related expenses be recognized together in the same reporting period. In some cases, it will be necessary to conduct a systematic allocation of a cost across multiple reporting periods, such as when the purchase cost of a fixed asset is depreciated over several years.

Accruals 75

Accruals Bookkeeping Financial Statements Invoicing 75

Accounting Tools

JANUARY 2, 2024

What are Accounting Reports? Accounting reports are compilations of financial information that are derived from the accounting records of a business. These can be brief, custom-made reports that are intended for specific purposes, such as a detailed analysis of sales by region, or the profitability of a specific product line.

Financial Statements 75

Financial Statements Accounting Accounting Budgeting 75

Accounting Tools

MAY 9, 2024

These are items of economic benefit that are expected to yield benefits in future periods. Examples of the Elements of Financial Statements The main elements of financial statements are as follows: Assets. Examples are accounts receivable, inventory, and fixed assets. Liabilities.

Financial Statements 73

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 73

Accounting Tools

APRIL 6, 2024

Financial Statements Production A reporting group within the department creates adjusting journal entries to bring the company's initial financial results into compliance with the applicable accounting framework , writes footnotes to accompany the financial statements , and releases financials following the end of each reporting period.

Accounting 75

Accounting Accounting Budgeting Financial Statements 75

Accounting Tools

OCTOBER 27, 2023

Audience Financial accounting involves the preparation of a standard set of reports for an outside audience, which may include investors , creditors , credit rating agencies , and regulatory agencies. Cost accounting involves the preparation of a broad range of reports that management needs to run a business.

Financial Accounting 75

Financial Accounting Cost Accounting Accounting Accounting 75

Accounting Tools

NOVEMBER 3, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook The accrual basis of accounting is used to record revenues and expenses in the period in which they are earned, irrespective of the timing of the associated cash flows. Do not include expenses for any accounts payable that were not actually paid in cash during the period.

Accruals 75

Accruals Accounting Accounting Accounts Payable 75

Accounting Tools

MAY 7, 2024

This information is presented for a reporting period, which is typically for one month, one quarter, or one year. An income statement is one of the three components of a complete set of financial statements , where the other two reports are the balance sheet and statement of cash flows.

General Ledger 73

General Ledger Accounting Software Financial Statements Tax 73

Accounting Tools

MAY 12, 2024

In a normal inflationary environment, this means that the cost of goods sold will be relatively low in comparison to current costs, which will increase the amount of taxable income ; also, the inventory value reported on the balance sheet will approximately match current costs. The FIFO concept also applies to the actual usage of inventory.

Auditing 72

Auditing Financial Reporting Tax Accounting 72

Accounting Tools

FEBRUARY 26, 2024

The trial balance is a report run at the end of an accounting period, listing the ending balance in each general ledger account. The initial trial balance that is run at the end of an accounting period is called the unadjusted trial balance. What is a Trial Balance? Nature of information.

General Ledger 75

General Ledger Bookkeeping Financial Statements Auditing 75

Accounting Tools

SEPTEMBER 7, 2023

The net reported amount of the gross receivable and the allowance is the amount of receivables outstanding that management actually expects to collect. This typically means that the account balance includes unpaid invoice balances from both the current and prior periods.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accounting 75

Accounting Tools

MARCH 8, 2024

What is External Financial Reporting? External financial reporting includes financial statements , financial summaries, and related disclosures that are issued to users outside of a reporting entity. External financial reports may be audited, in which case the auditor’s opinion letter accompanies the financial statements.

Financial Reporting 40

Financial Reporting Financial Statements Auditing Accounting 40

Accounting Tools

MARCH 1, 2024

Tax accounting may result in the generation of a taxable income figure that varies from the income figure reported on an entity's income statement. The reason for the difference is that tax rules may accelerate or delay the recognition of certain expenses that would normally be recognized in a reporting period.

Tax 75

Tax Accounting Accounting Financial Statements 75

Accounting Tools

JULY 20, 2023

Net income is the revenues recognized in a reporting period, less the expenses recognized in the same period. The result is a net income figure that does not reflect the amount of cash actually consumed or generated in a period. What is Net Cash Flow?

Accruals 75

Accruals Deposits Financial Analysis Financial Statements 75

Accounting Tools

NOVEMBER 26, 2023

Trend analysis involves the collection of information from multiple time periods and plotting the information on a horizontal line for further review. For example, a sudden spike in expense in one period followed by a sharp decline in the next period can indicate that an expense was booked twice in the first month.

Financial Analysis 75

Financial Analysis Financial Statements Expense Reports Budgeting 75

Accounting Tools

OCTOBER 11, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook Introduction to Accounting Basics Accounting is the practice of recording and reporting on business transactions. This is the amount of assets consumed during the measurement period. Accounts fall into the following classifications: Assets.

Accounting 75

Accounting Accounting Record Keeping Purchase Order 75

Accounting Tools

OCTOBER 25, 2023

Set Pay Period Verify that the payroll module is set for the correct pay period. These may be pay adjustments from previous periods, or payments related to the initial hiring or the termination of employees. Calculate Pay Have the software process all pay calculations for the period.

Payroll 71

Payroll Data Entry Deposits Tax 71

Outsourced Bookeeping

MARCH 7, 2024

According to industry experts, following the best practices of accounting and reporting practices not only contributes to strategic decision-making but also protects the financial health of your real estate business. We have listed down the best practices in accounting and reporting for you.

Outsourced Bookkeeping 59

Outsourced Bookkeeping General Ledger Accounting Accounting 59

Accounting Tools

APRIL 6, 2024

This contains a calculation of the direct labor costs to be incurred during the budget period, based on estimates of which products will be manufactured and what labor rates will be paid. This contains a calculation of the direct material costs to be incurred during the budget period. Direct materials budget. Production budget.

Budgeting 74

Budgeting Accounts Receivable Accounts Receivable Account Receivables 74

Accounting Tools

APRIL 18, 2024

Income tax payable is a liability that an entity incurs that is based on its reported level of profitability. Since tax credits typically expire after a period of time, one must pay close attention to which ones are available and can be applied to an income tax payable. Related Article Provision for Income Taxes

Tax 40

Tax Expense Reports Accounting Accounting 40

Accounting Tools

MAY 10, 2024

A post balance sheet event is something that occurs after a reporting period , but before the financial statements for that period have been issued or are available to be issued. What are Post Balance Sheet Events? An event provides new information about conditions that did not exist as of the balance sheet date.

Financial Statements 40

Financial Statements Collections Invoicing Accounting 40

Accounting Tools

APRIL 17, 2024

Under this approach, the cost of goods available for sale is divided by the number of units produced in the period to arrive at an average cost per unit. This amount is then assigned to the units sold in the period and the units remaining in stock. This method is only used when the periodic inventory system is in place.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

APRIL 14, 2024

One option is to wait for an actual employee to leave the company, and then keep the person in the payroll records for several additional pay periods , with the perpetrator intercepting the additional paychecks. Related Article Types of Payroll Fraud How to Create a Ghost Employee There are several ways to create a ghost employee.

Payroll 75

Payroll Auditing 75

Accounting Tools

NOVEMBER 26, 2023

Closing stock is the amount of inventory that a business still has on hand at the end of a reporting period. Assuming inflation is present, this tends to result in a lower cost of goods sold, and therefore more reported profits. What is Closing Stock? This includes raw materials , work-in-process , and finished goods inventory.

Financial Statements 74

Financial Statements Auditing Accounting Accounting 74

Counto

MARCH 19, 2024

Sole proprietors must file their personal income tax returns annually, reporting business income and expenses on forms like Form B for residents and Form M for non-residents. Proper record-keeping is crucial for accurate tax reporting and to navigate audits or inquiries by the Inland Revenue Authority of Singapore (IRAS).

Record Keeping 52

Record Keeping Financial Records Accruals Corporation Tax 52

Accounting Tools

NOVEMBER 7, 2023

Related Courses Accounting for Income Taxes How to Account for Income Taxes The essential accounting for income taxes is to recognize tax liabilities for estimated income taxes payable, and determine the tax expense for the current period. The concepts are noted below.

Tax 75

Tax Financial Statements Accounting Accounting 75

Accounting Tools

SEPTEMBER 7, 2023

The cost of goods manufactured schedule is used to calculate the cost of all items produced during a reporting period. If so, the standard cost of each unit sold and scrapped in the period is aggregated to arrive at the cost of goods sold. The total derived from this schedule is then used to calculate the cost of goods sold.

Financial Statements 75

Financial Statements Cost Accounting Auditing Financial Accounting 75