Bookkeeping

These professionals ensure that records accurately reflect a business’s financial health. Contra accounts are important in accounting practices because they help to ensure that financial statements are accurate and in compliance with GAAP (Generally Accepted Accounting Principles). They also help to provide a clear picture of a company’s financial health and performance. Accumulated depreciation is […]

They are regarded as a long-term financing source that does not have a maturity date; hence, the funds obtained via the sale of cumulative preferred shares do not need to be repaid. Just because you can convert a preferred stock into common stock doesn’t mean it’ll be profitable, though. Before converting your preferred stock, you

Depending on the size and structure of your organization, it may account for about 20 to 50 percent of all expenses. It’s important to analyze industry standards when determining the pay rate for specific positions and what benefits to offer. It’s no secret that people are at the heart of any business, and they need

It doesn’t necessarily mean you failed your IRS audit — often, you just made a irs audit mistake. The IRS can only send you to jail if you’ve committed willful tax fraud (and even then, it’s not easy for it to do). You can copy our free IRS audit response letter template. FORMER IRS AGENT

We’ve provided this information for educational purposes, and it does not constitute tax, legal, or accounting advice. If you would like a tax expert to clarify it for you, feel free to sign up for Keeper. Sometimes, your situation might not require a dedicated bookkeeper — but you could still use a hand with recordkeeping

While you havent yet received the income from the sale, you may need to record it to make sure it is included for the period in which you earned it. This type of adjustment is more common in industries where a customer contracts work that may take an extended period to fully complete. The above

The formula for long-term midstream success is superior scale, strong balance sheets, well-covered distributions and focus on high-quality assets and customers. After years of investing in assets and dealing with the debt to finance that cap ex, PAGP is following that formula. Recent price momentum is likely to lessen, but distribution growth backed by good

The journal entry is debiting allowance for obsolete inventory $ 5,000 and credit inventory $ 5,000. The transaction will not impact the income statement as well as the net balance of inventory. Inventory is presented as the net balance which is the combination of inventory cost and allowance for obsolete. So when this journal reduces

The debt-to-equity ratio is a financial ratio most often used by bankers and investors to tell how well a company uses debt to finance its operations. It is an important calculation for gauging business health and how attractive your company is to banks what is the difference between the current ratio and working capital and

The advantage of this is that COGS at retail is just sales and is much easier to track than actual COGS. When looking at retail accounting’s pros and cons, it’s key to balance its ease and benefits with the risk of less accurate inventory data. Knowing when to pick retail inventory accounting can make operations