Category: Bookkeeping

The result of the balancing off accounts process is that either a debit or a credit balance is brought down. To calculate your beginning cash balance for a cash flow statement, add all of the sums of capital available to your business at the beginning of the period covered by the statement. Include cash in […]

You can put the transaction in a suspense account until you determine where it belongs. Despite its mysterious connotations, “suspense” in this case simply refers to the fact that a transaction or its designation in a company’s books has been suspended temporarily, pending some further action. Through this, it makes it easy for businesses to […]

Knowing the true cost of individual products and services, precisely, is crucial for product planning, pricing, and strategy. However, In some settings, traditional costing gives notoriously misleading estimates of these costs. As a resultl, many turn instead to Activity Based Costing for costing accuracy. Double Entry Keeps The Accounting Equation In Balance Since more and […]

Several commenters stated that the NAICS codes represented a workable system for identifying a separate unrelated trade or business. Not all commenters agreed as to what level of these codes should be used to group the various activities. Most of the commenters making recommendations on the NAICS codes rejected the use of NAICS 6-digit codes. […]

This is the complete opposite of credit; it increases asset or expense accounts while decreasing liability, equity, or revenue accounts. For example, when you take out a loan, it is recorded as a credit under liabilities. It increases cash (debit) but also increases liability (credit), meaning you have more money to use but also a […]

A bookkeeping service company must have a track record of both past and ongoing clients. Most small businesses use a program or software to handle their accounting and bookkeeping work. So it’s important to tell bookkeeping pricing packages your prospective bookkeeper what you are using (or not using) so they can do their best to […]

Fringe Benefits Rates It is fundamental to think about the long-term effects as some benefits have a significant impact on the company’s finances. The total cost of fringe benefits for hourly employees doesn’t include allowances, premiums, or other benefits. Suppose we have an engineer at a tech firm salaried at $95,00 per year. The Taxpayer […]

The question of getting individual countries such as the United States on board is seen as a question of when not if. The advantages—transparency of operations, accessibility of financial records, and efficient data recovery—offer the emerging global marketplace a common language for evaluating the financial health of what is becoming a world of multinational companies. […]

Dr. Justine Waldman, founder and CEO of the REACH Project, Inc., discusses her experience on the front lines of the opioid crisis during the pandemic. Reviews comments must comply with our Review Policy Content Standards. Please do not use names (job titles / positions are acceptable) of any individual or identifying features, abusive remarks, or […]