The accounting equation states that the amount of assets must be equal to liabilities plus shareholder or owner equity. There are different categories of business assets including long-term assets, capital assets, investments and tangible assets. They were acquired by borrowing money from lenders, receiving cash from owners and shareholders or offering goods or services. The […]
This is very important, as the accuracy of financial reports and analyses rely on the accuracy of the available data. One of the main tasks of a bookkeeper https://www.bookstime.com/ is to record all the business’ financial transactions. This includes keeping track of earnings, expenses, receivables, payables, and even procurement. Additionally, you don’t have to be […]
This section will discuss the relationship between equity and shareholder relations, focusing on common and preferred stock and retained earnings. Below liabilities on the balance sheet is equity, or the amount owed to the owners of the company. Since they own the company, this amount is intuitively based on the accounting equation—whatever assets are left […]
QuickBooks Online is one of the preeminent cloud-based accounting software platforms on the market. With four plans available, there are several options from which to choose, depending on your needs. In this guide, we’ll break down QuickBooks Online pricing, including plans, key features, and alternative platform costs so you can decide which option is best […]
Are met, you cannot elect the section 179 deduction for the following property. If you deduct more depreciation than you should, you must reduce your basis by any amount deducted from which you received a tax benefit (the depreciation allowed). If you buy property and assume (or buy subject to) an existing mortgage or other […]
Chart displaying survey results regarding what services accountants help business owners with. In this article, we’ll detail how to hire an accountant and decide between an in-house or outsourced accountant. Generally, self-employed people are required to pay quarterly taxes on their earnings, with some exceptions. These exceptions are a bit confusing and vary based on […]
Now, you can look back and see that the bank loan created $20,000 in liabilities. It looks like your business is $17,000 ahead of where it started, but that doesn’t tell the whole story. You also have $20,000 in liabilities, which you’ll have to pay back to the bank with interest. double entry accounting has […]
This involves recording all financial transactions, including income, expenses, assets, and liabilities, in the company’s accounting system. By accurately updating the general ledger, you provide a comprehensive overview of the company’s financial position, which is crucial for decision-making and financial reporting. These full service bookkeeping duties could include data entry of accounts payable invoices and […]
If the credit balance is considered material, the company most likely will issue a refund to the customer instead of creating a debit memo. Before issuing a credit or debit memo, try to resolve any issues directly with the customer or supplier involved. Open communication can help prevent unnecessary disputes or misunderstandings. Conversely, when a […]
In terms of formation, upon filing the article of organization, the default status of a company is automatically a C Corp, so less paperwork is necessary. This could be helpful if a company needs to raise money by selling shares. S Corps cannot provide different classes of stock, and shareholders have the same rights and […]