Category: Bookkeeping

Businesses typically choose to report their P&L on an annual, quarterly, or monthly basis. Publicly traded companies are required to prepare financial statements on a quarterly and yearly basis, but small businesses aren’t as heavily regulated in their reporting. A quarterly income statement shows the gross profit or loss generated by your business over a […]

Current assets include cash (and cash equivalents), marketable securities, inventory, accounts receivable, and prepaid expenses. Current liabilities include https://www.bookstime.com/ accounts payable, short-term debt (and the current portion of long-term debt), dividends payable, current deferred revenue liability, and income tax owed within the next year. It’s a commonly used measurement to gauge the short-term financial health […]

See the full list of the best accounting software in our 2024 ranking guide. If your business has a lot of bills and receipts to keep track of, the new Desktop mobile app lets you scan these with your phone and then parses them into your records automatically. You can also have vendors email receipts […]

Users can click on any line in the tax form to display an audit trail for the amount represented. The program also includes diagnostic messages that help to pinpoint return inconsistencies and errors. An auto-compute feature is also available that allows users to easily view results as data is being entered into the system. Though […]

This costing system is used when the costs of producing each individual unit are very similar, and it is difficult to track the costs for each individual unit throughout the production process. In this article, we will discuss the process costing system examples, methods, and steps. Abnormal loss represents an area, which could have been […]

Generally, the amounts in the account Cash Short and Over are so small that the account balance will be included with other insignificant amounts reported on the income statement as Other Expenses. As mentioned, petty cash can make things nice and convenient but does carry certain risks. If you follow the petty cash account cash […]

Choose a billing method that allows for adjustments as your business evolves. Flexibility is key to accommodating changes in services, pricing structures, or client needs. Flat-rate billing is an invoicing method where a fixed fee is understanding income statements vs balance sheets charged for a specific service, regardless of the invested time or resources. Importance […]

In addition, Wave allows you to manage multiple businesses on one free account and uses double-entry accounting, which is ideal for accountants and tax time. Wave Accounting’s Starter plan is free and its Pro plan, which includes more features, is $16 per month. Regardless of which you choose, you will have to pay processing fees […]

The allotted compensation can significantly impact employee retention and your business’ cash flow. A bookkeeper (who may also be referred to as a financial clerk) can do some of the work or all of it, but it is not likely that your school just needs someone on payroll rather than having both positions. Modified Payroll […]

Yes, Xero accounting is used by small, midsize and large businesses in Australia. Each FreshBook plan includes free access for just one user (except for FreshBooks Select, which includes access for two users). Xero also offers a standalone payroll plan, which includes payroll for between one and four workers and starts at $15 per is […]