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

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. A negative balance should arise relatively rarely.

Bookkeeping 72

Bookkeeping Accounts Payable Accounts Payable Financial Accounting 72

Accounting Tools

JUNE 10, 2023

Restrictive Endorsement Best Practices A customer may send a supplier a check payment, on which is written the words "in full payment of account" or similar terms. Related Articles Joint Endorsement This is not precisely a restrictive endorsement, since it is not restricting the further negotiability of the check. Do not deposit it.

Deposits 75

Deposits Bookkeeping Auditing Bank Reconciliation 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

Accounting Tools

MAY 13, 2024

How to Account for a Fully Depreciated Asset The accounting for a fully depreciated asset is to continue reporting its cost and accumulated depreciation on the balance sheet. No further accounting is required until the asset is dispositioned, such as by selling or scrapping it. Depreciation.

Accounting 40

Accounting Accounting Financial Statements Expense Reports 40

Accounting Tools

MARCH 8, 2024

Advertising expense is a general ledger account in which is stored the consumed amount of advertising costs. The balance in this account is reset to zero at the end of each fiscal year , so that it can be populated in the next year with new advertising expenses. What is Advertising Expense?

General Ledger 40

General Ledger Accounting Accounting 40

Accounting Tools

AUGUST 8, 2023

Related Courses Bookkeeping Guidebook Closing the Books The Year-End Close What is a Closing Balance? A closing balance is the total in an account at the end of a reporting period. If an account is a permanent account , this amount is carried forward to the beginning of the next reporting period.

Bookkeeping 40

Bookkeeping Accounting Accounting 40

Accounting Tools

APRIL 9, 2024

The entire amount of the write-down charge appears on the income statement , while the reduced carrying amount of the asset appears on the balance sheet. The Difference Between a Write-Down and a Write-Off In a write-down, the carrying amount of an asset is reduced in a firm’s accounting records to some lesser amount.

Auditing 40

Auditing Accounting Accounting 40

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

AUGUST 26, 2023

Related Courses Corporate Cash Management Treasurer's Guidebook What is a Concentration Account? A concentration account is a deposit account into which funds are shifted from other locations. This type of account is used by businesses to aggregate cash for investment or supplier payment purposes.

Deposits 40

Deposits Accounting Accounting 40

Xero

NOVEMBER 30, 2022

When you select the figures in the ‘This month’ column on your accounts watchlist on the Xero dashboard, you’ll now be taken to the new version of the Account Transactions report. The invoice list in the Xero Accounting app (Android only) is being refreshed, making it easier for you to view and find information about your business.

XERO 207

XERO Payroll Bank Reconciliation Tax 207

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

SEPTEMBER 4, 2023

Related Courses Corporate Cash Management Treasurer's Guidebook A bank account is a record maintained by a banking institution, in which it records an ongoing series of cash inflows and outflows on behalf of a customer. The bank account also shows the current balance of cash in the record as of any point in time.

Deposits 40

Deposits Accounting Accounting Tax 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Accounting for Bonds Accountants’ Guidebook What is the Discount on Bonds Payable? The amount of this discount is stored in a contra liability account , which is paired with and offsets the bonds payable account. The $50,000 amount is recorded in a Discount on Bonds Payable contra liability account.

Accounting 40

Accounting Accounting 40

Nanonets

JANUARY 28, 2024

QuickBooks is a handy tool to help you reconcile your accounts without using any external tools.    In this article, we walk through the reconciliation process in QuickBooks, address common issues, and provide useful tips. Choose the account you want to reconcile. Enter the data, amount, and the expense account.

QuickBooks 52

QuickBooks Bank Reconciliation Reconciling Deposits 52

Nanonets

JANUARY 29, 2024

  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. ' Then, select the account you wish to reconcile. For this demonstration, we'll be using an account linked to an employee credit card.

QuickBooks 52

QuickBooks General Ledger Reconciling Deposits 52

Accounting Tools

NOVEMBER 4, 2023

A bank reconciliation statement is a form used to compare internal records of checking account activity to those stated by the bank. It itemizes the deposits, withdrawals, and other activities impacting the checking account for a one-month period. Subtract the cash balance recorded by the account holder.

Bank Reconciliation 40

Bank Reconciliation Deposits Record Keeping Auditing 40

Accounting Tools

JUNE 20, 2023

Related Courses Accounting for Leases How to Account for a Capital Lease A capital lease is a lease in which the lessee records the underlying asset as though it owns the asset. Note: The lease accounting noted in this article changed with the release of Accounting Standards Update 2016-02, which is now in effect.

Accounting 75

Accounting Accounting Accounts Payable Accounts Payable 75

Accounting Tools

MAY 21, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Debit Balance? There are several meanings for the term debit balance that relate to accounting, bank accounts, lending, and investing. Accounts that normally have a debit balance include assets, expenses, and losses.

Reconciling 40

Reconciling Bookkeeping Accounts Receivable Accounts Receivable 40

Accounting Tools

JULY 10, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook Property Management Accounting Straight-line rent is the concept that the total liability under a rental arrangement should be charged to expense on an even periodic basis over the term of the contract. Related Articles How to Account for Accrued Rent

Billing 75

Billing Bookkeeping Management Accounting Accounting 75

Accounting Tools

DECEMBER 8, 2023

If a company is generating profits and has issued all of the profits as dividends, the amount of earned capital is zero. Such companies will likely have large earned capital balances, as long as they are generating profits. This leaves $40,000 of earned capital, which appears in the retained earnings account.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

SEPTEMBER 1, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Depreciation Expense? When an entry is made to the depreciation expense account, the offsetting credit is to the accumulated depreciation account, which is a contra asset account that offsets the fixed assets (asset) account.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JANUARY 24, 2024

The amounts owed should be reported on the firm’s balance sheet as either accounts payable or loans payable. Accounts payable are usually classified as current liabilities , while loans may be classified as either current or long-term liabilities , depending on their scheduled repayment dates. Senior creditor.

Accounts Payable 40

Accounts Payable Accounts Payable Collections Accounting 40

Accounting Tools

SEPTEMBER 1, 2023

Related Courses Accounting for Income Taxes What are Deferred Income Taxes? The difference in the amount of tax reported and paid is caused by differences in the calculation of taxes in the local tax regulations and in the accounting framework that a company uses.

Tax 40

Tax Corporation Tax Financial Reporting Accounting 40

Accounting Tools

JUNE 8, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Accounting Cycle? The accounting cycle is the actions taken to identify and record an entity's transactions. The accounting cycle for individual transactions is noted below.

General Ledger 75

General Ledger Financial Statements Accounting Accounting 75

Counto

FEBRUARY 6, 2024

Schemes such as the Major Exporter Scheme (MES) and Zero-GST Warehouse Scheme (ZGS) offer opportunities to defer GST payments on imports, easing cash flow constraints. Try Counto accounting service Counto exists to help small businesses like you save time and money throughout the year.

Tax 52

Tax Financial Operations Financial Operations Accounting 52

Accounting Tools

MAY 21, 2023

The term describes an actual downward curve in the remaining cash balance, where substantial initial startup costs are incurred, thereby sharply dropping the amount of cash on hand. An investor needs to closely monitor and provide advice to a startup during this period, in order to increase the probability of gaining any return on investment.

Corporate Finance 40

Corporate Finance Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

SEPTEMBER 27, 2023

Related Courses Bookkeeping Guidebook How to Audit Liabilities The Balance Sheet What is an Accrued Liability? Journal Entry for an Accrued Liability The journal entry for an accrued liability is typically a debit to an expense account and a credit to an accrued liabilities account.

Accruals 40

Accruals Purchase Order Invoicing Payroll 40

Accounting Tools

JUNE 6, 2023

Related Courses Accounting for Income Taxes Small Business Tax Guide What is Income Tax Expense? Income tax expense is the amount of expense that a business recognizes in an accounting period for the government tax related to its taxable profit.

Tax 40

Tax Financial Statements Accounting Accounting 40

Accounting Tools

DECEMBER 17, 2023

Since the liquidation value of assets may be quite low, this can mean that the owners’ equity in a business is actually zero. Related Articles How to Calculate Shareholders’ Funds How to Calculate Stockholders’ Equity How to Calculate Total Equity Owners Capital Account Owner’s Drawing Account Types of Equity

Financial Statements 40

Financial Statements Bookkeeping 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

OCTOBER 20, 2023

Credit Policy If a business offers easy credit terms to its customers , the company is investing in accounts receivable that may be outstanding for a long time. Conversely, short payment terms reduce this source of cash, which increases the working capital balance. Working Capital Management Working Capital Policies

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

AUGUST 4, 2023

What is an Expense Account? Expense accounts store information about different types of expenditures in an organization’s accounting records. The phrase most commonly refers to travel and entertainment expenses, and also applies to a type of account. Both definitions are noted below.

General Ledger 40

General Ledger Accounting Accounting Expense Reports 40

Accounting Tools

MARCH 24, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting Goodwill Impairment Essentials What is Amortization of Intangibles? At the end of five years, the carrying amount of the asset will have been reduced to zero.

Computation 40

Computation Accounting Accounting 40

Accounting Tools

JUNE 21, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets How to Depreciate Leasehold Improvements A leasehold improvement is created when a lessee pays for enhancements to building space, such as carpeting and interior walls. Otherwise, the lessee can record the expenditure in the leasehold improvements asset account.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JUNE 12, 2023

Related Courses Accounting for Investments Corporate Finance GAAP Guidebook What is the Amortization of Discount on Bonds Payable? This method is a more accurate amortization technique, but also calls for a more complicated calculation, since the amount charged to expense changes in each accounting period.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

MARCH 7, 2024

Accounting for an Asset Retirement Obligation A business should recognize the fair value of an ARO when it incurs the liability and if it can make a reasonable estimate of the fair value of the ARO. Related Articles Long-Term Liabilities The Difference Between Assets and Liabilities Off Balance Sheet Liability

Financial Statements 40

Financial Statements Accounting Accounting 40