Bookkeeping

From an accountant's perspective, the post-closing trial balance is akin to the final bow after a performance; it's the culmination of meticulous work and attention to detail. For auditors, it represents a checkpoint for compliance and correctness, a document...

For example, Doctors Without Borders allocates a significant portion of its budget (over 80%) to direct program expenses, ensuring most donations fund medical care in crisis zones. Your budget will be unique to your organization, but we’ll give you...

You can think of them as resources that a business controls due to past transactions or events. These may include Treasury bills and certificates of deposit (CDs). For example, a company uses $400 worth of utilities in May but...

However, by effect it can benefit your business by bolstering the relationship with your customer. Offering net 90 to them will considerably reduce the chances that your customer fails to pay their invoice on-time, and they’ll appreciate the added...

Understanding the total cost of manufacturing, including applied overhead, helps in setting product prices that cover costs and yield desired profit margins. This capability is crucial for maintaining competitive pricing while ensuring business sustainability. By calculating applied overhead, businesses...

The selection of the appropriate legal accounting software is a critical decision for law firms, directly impacting their ability to manage finances efficiently, ensure compliance, and maintain client trust. Furthermore, legal accounting plays a pivotal role in ensuring that...

Instead of owner’s equity, the statement of financial position looks at net assets. Therefore, it displays assets (what you own), liabilities (what you owe), and net assets (your value). While each financial statement provides unique insights, they complement...

These funds are typically generated from unrestricted revenue sources or previous surpluses. They allow nonprofits to have financial flexibility and respond to emerging needs or opportunities. Organizations often designate a portion of their unrestricted net assets as operating...

The management of direct materials is a multifaceted challenge that requires a strategic approach to optimize production costs. By considering various perspectives and employing best practices, businesses can effectively is direct materials a variable cost manage the impact of...

If you have online bookkeeping enough cash flow to cover payment delays, offering net terms could boost sales and build customer loyalty. But if your business needs immediate payment to operate, longer terms might not be a good fit....