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. What are Revenues? Non-operating revenues.

Accruals 40

Accruals Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

MAY 13, 2024

Related AccountingTools Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements Liquidity Analysis Liquidity analysis is a detailed review of working capital , involving the calculation of turnover rates for accounts receivable , inventory , and accounts payable.

Financial Analysis 40

Financial Analysis Financial Statements Accounts Payable Accounts Payable 40

Accounting Tools

MAY 7, 2024

The table is commonly used by the issuers of bonds to assist them in accounting for these instruments over time. The Effective Rate Method The most accurate method used for this calculation is called the effective rate method. The discount rate used is the market rate of interest.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

MAY 4, 2024

What is the Aging Method? The aging method is used to estimate the amount of uncollectible accounts receivable. The total derived from this calculation should match the amount stated in the allowance for doubtful accounts contra account, which is paired with and offsets the trade receivables account.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Reconciling 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

JUNE 7, 2023

Related Courses Closing the Books The Statement of Cash Flows What is a Statement of Cash Flows? A statement of cash flows contains information about the flows of cash into and out of a company, and the uses to which the cash is put.

Financial Statements 75

Financial Statements Payroll Accounts Receivable Accounts Receivable 75

Counto

APRIL 3, 2024

Enhancing Cash Flow: Effective Digital Payment Options for Businesses in Singapore It’s undeniable that the shift towards digital payments is accelerating, driven by Singapore’s Smart Nation initiative and the pursuit of greater efficiency. Let’s look at the various digital payment methods that help you do that.

Collections 52

Collections Payroll Invoicing Tax 52

Accounting Tools

MARCH 25, 2024

What is a Cash Receipt? A cash receipt is a printed statement of the amount of cash received in a cash sale transaction. A copy of this receipt is given to the customer , while another copy is retained for accounting purposes.

Accounting 40

Accounting Accounting 40

Accounting Tools

MARCH 2, 2024

What is Operating Cash Flow? Operating cash flow is the net amount of cash that an organization generates from its operating activities. This information is used to determine the viability of the core operations of a business, since positive cash flow is needed to maintain and grow a firm’s operations over time.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

OCTOBER 12, 2023

Accounting for Bad Debt There are two ways to record a bad debt, which are the direct write-off method and the allowance method. The direct write-off method is more commonly used by smaller businesses and those using the cash basis of accounting. Both options are discussed below.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accruals 75

Accounting Tools

JUNE 12, 2023

Problems with the Simple Rate of Return While this method has the advantage of being simple and easy to calculate, it also suffers from several problems, which are noted below. The problems enumerated here indicate that the simple rate of return is an excessively simplistic method to use for judging a capital budgeting request.

Corporate Finance 75

Corporate Finance Budgeting Tax Financial Analysis 75

Accounting Tools

MAY 13, 2024

The working ratio does not account for projected changes in operating expenses. False cash flow equivalence. The ratio assumes that cash flows exactly equate to the amounts of operating expenses and gross revenues stated in the formula, which may not be the case. What is the Working Ratio? Uses the wrong baseline.

Financial Statements 40

Financial Statements Accounting Accounting 40

Nolan Accounting Center

OCTOBER 15, 2023

If your business is located in Southeast Wisconsin, Nolan Accounting can help with your company’s financials. If your business is located in Southeast Wisconsin, Nolan Accounting can help with your company’s financials. We offer a variety of financial services including accounting, bookkeeping, payroll, and tax prep.

Budgeting 90

Budgeting Account Bookkeeping Payroll Financial Services 90

Accounting Tools

JULY 17, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook A bad debt can be written off using either the direct write off method or the provision method. There are two ways to account for a bad debt, which are noted below. The first approach tends to delay recognition of the bad debt expense.

Invoicing 75

Invoicing Accounts Receivable Accounts Receivable Account Receivables 75

Blake Oliver

JANUARY 10, 2024

This article summarizes Zak’s insights from my recent Earmark Podcast interview to provide accountants and tax professionals with key guidance. This article summarizes Zak’s insights from my recent Earmark Podcast interview to provide accountants and tax professionals with key guidance.

Tax 80

Tax Accounting Accounting Record Keeping 80

oAppsNet

APRIL 5, 2024

As we usher in the year 2024, the accounts payable (AP) landscape is undergoing rapid transformation driven by technological advancements, changing business dynamics, and evolving customer expectations. ML algorithms can analyze historical data to identify patterns, predict cash flow trends, and optimize payment strategies.

Accounts Payable 52

Accounts Payable Accounts Payable AP Accounting 52

Accounting Tools

MARCH 6, 2024

A cash pool is a cluster of subsidiary bank accounts and a concentration account into which funds flow from the subsidiary accounts. A company may elect to pool cash within the home country of each currency (e.g., This is one of the more efficient methods used by larger organizations to manage their cash flows.

Accounting 40

Accounting Accounting 40

Accounting Tools

OCTOBER 11, 2023

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is the Direct Method? Under the direct method, actual cash flows are presented for items that affect cash flow. What is the Indirect Method? Either method may be used by a reporting entity.

General Ledger 40

General Ledger Cash Collection Accruals Financial Statements 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Accountants' Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is an Accounting Method? An accounting method is a set of rules under which revenues and expenses are reported in financial statements. There are also tax implications associated with the choice of accounting method.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Counto

FEBRUARY 22, 2024

Accounting Basics Every Startup Should Know Launching a business is thrilling, yet demands crucial financial decision making. Mastering accounting basics is vital for steering your startup towards success. What is Accounting? Let’s dive into the essentials together!

Accounting 52

Accounting Accounting Accruals Accounting Software 52

Accounting Tools

MAY 10, 2024

Bad debt expense is the amount of an account receivable that cannot be collected. This is a debit to the bad debt expense account and a credit to the accounts receivable account. 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

Counto

MARCH 23, 2024

Evolution of Global Accounting Standards Globalisation spurred the need for uniform accounting standards. The International Accounting Standards Committee laid the groundwork in 1973, leading to today’s International Financial Reporting Standards (IFRS). Nature of Business: Complexity of transactions and business model.

Financial Reporting 52

Financial Reporting Accruals Financial Statements Corporation Tax 52

Accounting Tools

JUNE 7, 2023

Related Courses The Interpretation of Financial Statements The Statement of Cash Flows What is Net Cash Flow? Net cash flow is the amount of cash generated or lost over a specific period of time, usually over one or more reporting periods. Net cash flow is comprised of three forms of activities, which are noted below.

Accruals 73

Accruals Financial Statements Accounting Accounting 73

Accounting Tools

NOVEMBER 1, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is the Annuity Method of Depreciation? The annuity method of depreciation is a depreciation technique that focuses on achieving a constant rate of return on an asset. To employ the annuity method, follow the steps noted below.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 25, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is the Accounting Breakeven Point? The accounting breakeven point is the sales level at which a business generates exactly zero profits , given a certain amount of fixed costs that it must pay for in each period.

Accruals 75

Accruals Accounting Accounting Financial Analysis 75

Accounting Tools

APRIL 17, 2024

Related AccountingTools Courses Accounting for Bonds Accounting for Investments Corporate Finance Example of the Amortization of a Bond Premium ABC International issues $10,000,000 of bonds at an interest rate of 8%, which is somewhat higher than the market rate at the time of issuance.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

DECEMBER 10, 2023

What is the Accrual Basis of Accounting? The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred. The use of this approach also impacts the balance sheet , where receivables or payables may be recorded even in the absence of an associated cash receipt or cash payment, respectively.

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Counto

FEBRUARY 17, 2024

Terms of Payment: Outline the payment terms, encompassing the payment deadline, potential early payment incentives or late payment penalties, and the accepted payment methods. Record Keeping: Serve as official records of transactions, aiding in inventory management, client analysis, and account reconciliation.

Invoicing 52

Invoicing Record Keeping Account Reconciliation Payroll 52

Accounting Tools

MARCH 29, 2024

What is the Percentage-of-Sales Method? The percentage-of-sales method is used to develop a budgeted set of financial statements. The approach can also be used to forecast some balance sheet items, such as accounts receivable , accounts payable , and inventory. Estimate sales for the forecast period.

Budgeting 40

Budgeting Financial Statements Accounts Payable Accounts Payable 40

Accounting Tools

NOVEMBER 3, 2023

Related Courses Capital Budgeting The payback period is the amount of time required for cash inflows generated by a project to offset its initial cash outflow. This approach works best when cash flows are expected to be steady in subsequent years. This approach works best when cash flows are expected to vary in subsequent years.

Budgeting 40

Budgeting Financial Analysis Accounting Accounting 40

Accounting Tools

AUGUST 4, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets How to Account for Fixed Assets A fixed asset is an item having a useful life that spans multiple reporting periods, and whose cost exceeds a certain minimum limit (called the capitalization limit ).

Accounting 76

Accounting Accounting Accounts Payable Accounts Payable 76

Accounting Tools

APRIL 6, 2024

What Does the Accounting Department Do? The accounting department is responsible for a large number of administrative functions within an organization. It is essential to issue billings on time, in order to enhance cash flows. The previous year’s budget may be used as a baseline to formulate the budget for the next year.

Accounting 75

Accounting Accounting Budgeting Financial Statements 75

Counto

MARCH 19, 2024

Record Keeping Guidelines Separate Business and Personal Finances: Keep business and personal finances separate with dedicated bank accounts. Organised Records: Use accounting software, maintain a filing system for physical documents, and regularly reconcile bank statements.

Record Keeping 52

Record Keeping Financial Records Accruals Corporation Tax 52

Counto

FEBRUARY 3, 2024

Managing Accounts Payable for Small Businesses In the world of small businesses and startups, managing accounts payable (AP) is a critical aspect of maintaining a healthy cash flow. Plus, we’ll explore the benefits of using automated software to streamline the accounts payable process. What Are Accounts Payable?

Accounts Payable 52

Accounts Payable Accounts Payable Management Accounting Accounting 52

Accounting Tools

FEBRUARY 23, 2024

Instead, several valuation methods are used to develop a range of possible valuations. Instead, several valuation methods are used to develop a range of possible valuations. The more common methods used to value it are noted below.

Financial Analysis 40

Financial Analysis Accounting Accounting 40

Accounting Tools

MARCH 28, 2024

Under the LIFO method, the cost of the last inventory acquired is assigned to the first inventory used. This situation can arise when management decides to retain fewer units on hand, perhaps due to a cash flow crunch. This situation can arise when management decides to retain fewer units on hand, perhaps due to a cash flow crunch.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

MARCH 12, 2024

A landlord using the accrual basis of accounting should record this income, in order to recognize it in the period in which it was earned. Accounting for Accrued Rent Income The amount of any accrued rent income should not be recorded if it is probable that the tenant will not pay, and there is no alternative method for receiving payment.

Accruals 40

Accruals Accounts Receivable Accounts Receivable Account Receivables 40