Category Archives: Bookkeeping

This means that the company’s bank balance is greater than the balance reflected in the cash book. Intuit helps put more money in consumers’ and small businesses’ pockets, saving them time by eliminating work, and ensuring they have confidence in every financial decision they make. Most differences highlighted by the bank reconciliation procedure are due […]

A contra revenue account that reports the discounts allowed by the seller if the customer pays the amount owed within a specified time period. For example, terms of “1/10, n/30” indicates that the buyer can deduct 1% of the amount owed if the customer pays the amount owed within 10 days. As a contra revenue […]

This does not increase subsequently when the value of the asset appreciates. The fact that everyone is using the same system makes it easier ultimate profit tracker for your business for everyone to know the exact value of business assets. Historical cost is a transparent accounting measure, as the costs are verifiable. Submit to get […]

For example, a piece of real estate purchased for $200,000 a decade ago might now be worth $500,000 due to market appreciation. Fair value accounting would reflect this current market value, providing stakeholders with a more up-to-date picture of the company’s assets. This approach can be especially useful for investors and analysts who rely on […]

Kevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast. He has been quoted by publications like Readers Digest and The Wall Street Journal. Kevin’s work has been featured in […]

There could be transactions unaccounted for in your personal financial records because of a bank adjustment. This may occur if you were subject to any fees, like a monthly maintenance fee or overdraft fee. For interest-bearing accounts, a bank adjustment could be the amount of interest you earned over the statement period. When you do […]

It reconciles the beginning balance of net income or loss for the period, subtracts dividends paid to shareholders and provides the ending balance of retained earnings. Positive retained earnings signify financial stability and the ability to reinvest in the company’s growth. This usually gives companies more Bookkeeping for Veterinarians options to fund expansions and other […]

That is because the bad debt expense was recognized when the company recorded the estimated uncollectable amount in the period of respective sales recognition. So, bad debt expenses are only recorded when the company posts the estimates of uncollectable balances due from customers, but not when bad debts are actually written off. This approach fully […]

Estimating collection shortfalls is an important part of managing cash flow. Identify which financial elements to track along with your sales numbers. This number may seem small, but it’s crucial when you remember that she’s hoping for an increase of sales next month of $1,978. With a BDE of $1,100, she might be looking at […]

This might involve staying up-to-date with industry news, attending seminars or workshops, or participating in professional development courses. This means being aware of the rules and regulations applicable to your company’s operations, and ensuring all financial activities adhere to these rules. Being in the construction industry, you also need to keep up-to-date with the latest […]