Bookkeeping blogs that give additional knowledge in recording your financials.
Liabilities are an obligation. When we say liabilities, it is an obligation arising from either a contract, law, or a promise to pay. Now, what are the requirements for an obligation to be recorded as a liability to our financial statement? We have three requirements for an obligation to be included in the financial statement. …
Key people in the company must know how to forecast revenue. Especially during an economic crisis or fortuitous events. Forecast revenue gives a picture of the company’s annual performance. Forecasting revenue differs in every business industry. Some business industry revenue forecast is accurate or close to reality. These are usually long-term investments, recurring subscriptions, rental …
What is class tracking in QuickBooks? Class tracking is a QuickBooks feature that allows the user to categorized income and expenses. Moreover, store locations (if more than one store), product lines, or departments. In addition, services offered (for the service industry that usually bill weekly/monthly) and partners or clients. The purpose of class tracking is …
Notes to Financial Statements are literally written notes. It is a letter or written message about financial statements. Notes are written It is for the readers to understand a particular matter better. The purpose of notes to financial statements is to let the statements or documents function alone. For instance, the sticky notes on a …
How to improve budgeting and forecasting is an important factor in company success. Successful companies are mostly determined by net income. Correct budgeting and forecasting will give the company the desired net income or even more. Failure to do so will result in low income or a net loss. Knowing the future expenses will …
These are the business’s concerns. If their accounting practice follows the generally accepted accounting principles or GAAP. Generally Accepted Accounting Principles (GAAP) are accounting rules and standards followed in reporting financial statements. GAAP namely Accrual basis accounting, Cash basis accounting, and Revenue recognition principle. In addition, the Matching principle, Materiality principle, and Substance over form …
Billing and Collection are very important in putting up a business. Business industry set proper billing and collection system for an effective business operation. Because companies earn income from business operations. Regardless of what mode of payment the customer makes. Whether the customer pays cash, credit, or terms. Companies need a billing and collection system …
Payroll taxes – taxes withheld from employees. It usually consists of 1601C or withholding tax compensation. Other companies also consider withholding tax expanded or 0619E as payroll taxes. Especially those companies that give commissions aside from basic pay. Withholding Tax Compensation One of the payroll taxes is the withholding tax compensation or 1601C. Withholding tax …
Bookkeeping and QuickBooks have similarities and differences. In this article, we will discuss basic bookkeeping and QuickBooks transactions. I have also included examples of bookkeeping and QuickBooks for you to understand. Difference Between Bookkeeping and QuickBooks The difference between bookkeeping and QuickBooks is the process. Process in the sense that in bookkeeping it is the …
Bookkeeping vs Accounting is a topic that needs further discussion to emphasize the similarities and differences between the two. Bookkeeping is the identification of financial transactions relevant to the business firm and records by a bookkeeper. Accounting is the bookkeeping process plus summarizing, preparation of financial statements which will be interpreted by an accountant to …