Accounting Tools

FEBRUARY 13, 2024

What is the Operating Cycle? The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. Longer payment terms shorten the operating cycle, since the company can delay paying out cash.

Accounting 40

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

OCTOBER 22, 2023

Related Courses Accounting for Inventory Inventory Management What is Stock Taking? Verify Counts The cost accountant compares the resulting information to the unit balances maintained in the company's perpetual inventory system (assuming that it has one). Stock taking is the counting of on-hand inventory.

Computation 75

Computation Reconciling Auditing Cost Accounting 75

Accounting Tools

OCTOBER 3, 2023

Related Courses Human Resources Guidebook Optimal Accounting for Payroll Payroll Management What is a Payroll Cycle? A payroll cycle is the length of time between payrolls. Thus, if an entity pays its employees every Friday, this is a one-week payroll cycle, whereas paying them once a month is a monthly payroll cycle.

Payroll 40

Payroll Deposits Collections Accounting Software 40

Accounting Tools

JUNE 11, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook New Controller Guidebook What is the Purpose of Accounting? The purpose of accounting is to accumulate and report on financial information about the performance, financial position , and cash flows of a business.

Financial Statements 75

Financial Statements Accounting Accounting Financial Reporting 75

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Transaction? A transaction is a business event that has a monetary impact on an entity's financial statements , and is recorded as an entry in its accounting records. Paying an employee for hours worked.

General Ledger 75

General Ledger Accruals Financial Statements Bookkeeping 75

Accounting Tools

APRIL 17, 2024

When these crops have a cycle of less than one year, they are referred to as annuals. Accounting for Growing Crops All costs of growing crops are to be accumulated until harvesting time. Related AccountingTools Courses Accounting for Vineyards and Wineries Agricultural Accounting Related Article Accounting for Crops

Accounting 40

Accounting Accounting 40

Accounting Tools

APRIL 25, 2024

This process may go on through several cycles, where the same (or insufficiently reduced) overhead base is assigned to fewer and fewer products. This process may go on through several cycles, where the same (or insufficiently reduced) overhead base is assigned to fewer and fewer products. The company has factory overhead of $600,000.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

MAY 6, 2024

Related AccountingTools Courses Accounting for Inventory Inventory Management ABC Analysis Applied to Cycle Counting The ABC concept can be applied to cycle counting , where "A" items are counted the most frequently. ABC analysis is used to categorize items into three classifications, based on activity levels. C" classification.

Customer Service 40

Customer Service Accounting Accounting 40

Accounting Tools

NOVEMBER 2, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is Backflush Accounting? Backflush accounting is when you wait until the manufacture of a product has been completed, and then record all of the related issuances of inventory from stock that were required to create the product.

Accounting 75

Accounting Accounting Billing Computation 75

Accounting Tools

APRIL 7, 2024

A liability is recorded in the general ledger , in a liability-type account that has a natural credit balance. A number of examples of liability accounts are presented in the following list, which is split into current and long-term liabilities: Examples of Current Liabilities The following are examples of current liabilities.

General Ledger 75

General Ledger Payroll Deposits Invoicing 75

Accounting Tools

FEBRUARY 13, 2024

To avoid it, consider implementing a cycle counting system. Related AccountingTools Courses Accounting for Inventory Inventory Management Related Articles How to Calculate Ending Inventory How to Estimate Ending Inventory Inventory Count Procedure Physical Count Physical Inventory What is Taking Inventory?

Accounting 75

Accounting Accounting 75

Accounting Tools

OCTOBER 11, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is the Cash Conversion Cycle? The cash conversion cycle measures the time period required to convert resources into cash. A short duration cash conversion cycle allows a business to be operated with a smaller up-front cash investment.

Collections 40

Collections Bookkeeping Billing Invoicing 40

Counto

FEBRUARY 22, 2024

The FYE represents the conclusion of a company’s accounting period, typically spanning 12 months. Unlike the fixed calendar year, Singapore companies have the flexibility to tailor their FYE to align with operational cycles and regulatory requirements, offering versatility in financial planning and reporting.

Financial Analysis 52

Financial Analysis Financial Statements AR Tax 52

Accounting Tools

FEBRUARY 15, 2024

From an accounting perspective, the total cost concept is more applicable to financial reporting, where overhead costs must be assigned to certain assets. Total Cost for Cost Accounting Total cost refers to the aggregation of all types of costs related to a cost object , which means fixed costs , variable costs, and mixed costs.

Cost Accounting 72

Cost Accounting Financial Reporting Budgeting Tax 72

Accounting Tools

JUNE 8, 2023

Related Courses New Controller Guidebook What is the Billing Cycle? The billing cycle is the recurring date on which a business issues invoices to its customers. Billing Cycle Best Practices When a business wants to accelerate its cash flows , it can adopt a more frequent billing cycle, such as once a week.

Billing 40

Billing Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

SEPTEMBER 29, 2023

Related Courses How to Conduct an Audit Engagement What is the Audit Cycle? The audit cycle is the period of time during which auditors may engage in auditing activities as part of their audit of a client’s financial statements. Components of the Audit Cycle There are several distinct stages in the audit cycle.

Auditing 40

Auditing Financial Statements Collections Accounting 40

Counto

JANUARY 8, 2024

Whether it’s for better aligning with your business cycle or optimising tax exemptions, altering your FYE is possible. Here are some common scenarios: Business Cycle Realignment: Your business may have evolved, and your FYE no longer aligns with your operational cycles. What makes the FYE of a company very important?

Financial Statements 52

Financial Statements Tax Accounting Accounting 52

Accounting Tools

OCTOBER 10, 2023

Operating Cycle The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. Related Articles Delivery Cycle Time Manufacturing Cycle Efficiency Realization Rate Value Added Ratio

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Collections 40

Accounting Tools

SEPTEMBER 23, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is a Physical Count? The Difference Between a Physical Count and Cycle Counting A cycle count is a subset of a physical count, since it involves counting only a small portion of the total inventory each day.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JANUARY 18, 2024

A journal voucher is a document on which is stored the essential information about an accounting transaction. It also contains the accounts impacted, supporting references to documentary evidence, and authorizing signatures. What is a Journal Voucher? A journal voucher is a written authorization to make a transaction entry.

Bookkeeping 40

Bookkeeping Auditing Accounting Accounting 40

Accounting Tools

JANUARY 18, 2024

The span chosen usually corresponds to the natural business cycle of an entity. First, it allows a business to close its books during a down period in its business cycle, when there are fewer outstanding transactions. This period does not have to correspond to the calendar year. This makes it more cost-effective to close the books.

Financial Statements 40

Financial Statements Financial Analysis Auditing Budgeting 40

Accounting Tools

JUNE 14, 2023

Related Courses Accounting for Inventory How to Audit Inventory How to Conduct an Audit Engagement What are Inventory Audit Procedures? They typically test the last few receiving and shipping transactions prior to the physical count, as well as transactions immediately following it, to see if you are properly accounting for them.

Auditing 75

Auditing General Ledger Reconciling Invoicing 75

Accounting Tools

JUNE 10, 2023

This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account. Related Courses The Balance Sheet The Interpretation of Financial Statements What are Retained Earnings? A large retained earnings balance implies a financially healthy organization.

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

SEPTEMBER 6, 2023

Related Courses Credit and Collection Guidebook Effective Collections What is Collection Dispute Cycle Time? Collection dispute cycle time is the time required to resolve the average collection dispute. Related Articles Accounts Receivable Discounted Collection Effectiveness Index Deduction Management

Collections 40

Collections Record Keeping Accounts Receivable Accounts Receivable 40

Counto

JANUARY 11, 2024

How to Change Your Payroll Provider End of the pay cycle often brings stress to business owners, who are tasked with running accurate payroll. Integration Complications: Seamless integration with accounting and non-wage systems is crucial. Despite spending hours on payroll processing, many still encounter errors.

Payroll 52

Payroll Budgeting Reconciling Tax 52

Accounting Tools

JANUARY 12, 2024

What is a Cost Accountant? A cost accountant is someone who analyzes the cost structure of a business and extracts actionable information that can improve the profitability of a business. Also, a BA/BS degree, as well as excellent analysis skills, and the ability to collaborate with a multi-department team.

Cost Accounting 40

Cost Accounting Accounting Accounting Budgeting 40

Accounting Tools

DECEMBER 19, 2023

Accountancy is the practice of recording, classifying, and reporting on business transactions for a business. The key accountancy tasks are noted below. There are also a number of business transactions that are non-repetitive in nature, and so require the use of journal entries to record them in the accounting records.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

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

JULY 24, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are the Basics of Financial Accounting? This article gives an overview of financial accounting basics for the non-accountant. First, what do we mean by "financial" accounting? Accounts receivable.

Financial Accounting 75

Financial Accounting General Ledger Accounting Accounting 75

Accounting Tools

JANUARY 5, 2024

Related AccountingTools Courses Credit and Collection Guidebook Effective Collections Essentials of Collection Law Related Articles Average Accounts Receivable Calculation Cash Collection Cycle Collection Effectiveness Index Debtor Days Calculation Receivable Turnover

Collections 40

Collections Cash Collection Accounts Receivable Accounts Receivable 40

Accounting Tools

OCTOBER 24, 2023

If an organization has an operating cycle lasting more than one year, an asset is still classified as current as long as it is converted into cash within the operating cycle. The main problem with relying upon current assets as a measure of liquidity is that some of the accounts within this classification are not so liquid.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Accounting Tools

JULY 26, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are the Basic Accounting Concepts? There are a number of conceptual issues that one must understand in order to develop a firm foundation of how accounting works. These basic accounting concepts are noted below.

Financial Statements 76

Financial Statements Accruals Accounting Accounting 76

Accounting Tools

JULY 8, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook Closing the Books What are the Steps in the Accounting Process? The accounting process is three separate types of transactions used to record business transactions in the accounting records. We will address these three parts of the accounting process below.

Financial Statements 75

Financial Statements Accounting Accounting General Ledger 75

Accounting Tools

DECEMBER 13, 2023

What is Accounting Practice? Accounting practice is the system of procedures and controls that an accounting department uses to create and record business transactions. Auditors rely upon consistent accounting practice when examining a company's financial statements.

Accounting 75

Accounting Accounting Financial Statements QuickBooks 75

The Institute of Financial Operations

APRIL 1, 2022

Do a quick litmus test on your current Accounts Payable (AP) processes: How many FTEs in Accounts Payable? How many invoices do you process per annum? This provides you with the number of invoices processed per FTE per annum. Yet, even the worst-performing AP departments don’t seem to realise how far they lag behind their peers.

Accounts Payable 130

Accounts Payable Accounts Payable AP Data Entry 130

Accounting Tools

APRIL 14, 2024

Related AccountingTools Courses Accounting Controls Guidebook Budgeting Capital Budgeting Related Articles Budgeting Controls (podcast) Control Cycle Budgetary control is a system of procedures used to ensure that an organization's actual revenues and expenditures adhere closely to its financial plan. Goal clarification.

Budgeting 40

Budgeting Financial Statements Accounting Accounting 40