Category: Bookkeeping

Basic Bookkeeping Principles For Your Small Business PDF Debits And Credits Bookkeeping In double-entry accounting, a debit records money flowing into an account. For example, if you receive a $5,000 loan, you would record it as a debit in your cash (asset) account. Finally, expenses function opposite of revenue because they reduce owner’s equity. Your…

In an environment where consumers expect personalized, consistent engagement across online and offline channels, the divisions between sales and marketing have blurred. Companies dependent on the siloed sales and marketing model that worked well in the past are not equipped to conduct efficient, integrated omnichannel activities that are necessary to compete in today’s market. Growing…

A capital lease is a lease in which the lessor only finances the leased asset, and all other rights of ownership transfer to the lessee. This results in the recordation of the asset as the lessee’s property in its general ledger, as a fixed asset. If the leaseback is classified as a finance lease (by…

Receivables Turnover Ratio: Formula, Importance, Examples, and Limitations The aggregate amount of sales or services rendered by an enterprise to its customers on credit. The terms gross credit sales and net credit sales are sometimes used to distinguish the sales aggregate before and after deduction of returns and trade discounts. The concept of net credit…

Retained earnings are reported in the shareholders’ equity section of a balance sheet. Any item that impacts net income (or net loss) will impact the retained earnings. Such items include sales revenue, cost of goods sold (COGS), depreciation, and necessary operating expenses. When preparing the retained earnings statement the beginning retained earnings balance can always be…

The Difference Between Current Expenses and Capital Expenses This distinction is crucial for accurate financial reporting, tax compliance, and maximizing your business’s profitability. For many business owners and employers, the difference between current and capital expenses is a subtle one. In the framework of your tax return, however, correctly making this distinction is critical to accurately…

Sales Discounts: The Discount Dilemma: Sales Discounts as a Contra Revenue Account Sales discounts are a powerful tool that can influence consumer behavior in various ways. By following these best practices, businesses can ensure that sales discounts contribute positively to their financial goals and provide valuable insights for strategic decision-making. From the auditor’s perspective, ensuring…

For businesses with over $200,000 of monthly expenses, this might offer the type of customization you’d need. Some additional services you may have access to include inventory tracking, BillPay, CFO services, and tax services. NOW CFO offers professional bookkeeping services designed to meet the specific needs of your business. Our focus is on delivering accurate,…

As such, absorption costing is of limited significance from the point of view of decision-making. To determine the inventory value for the balance sheet, this cost is multiplied by the number of unsold units. To illustrate absorption in practice, imagine applying this formula to track costs for unsold products at the end of a reporting…