All posts in Bookkeeping

As inflation causes the price of goods to rise in the future, your purchasing power decreases. To actually perform the NPV calculation itself, you can use an NPV calculator, financial calculator, or the NPV function in Excel, which we will take a look at next. As shown above, the investment project with the highest profitability…

We will debit the revenue accounts and credit the Income Summary account. The credit to income summary should equal the total revenue from the income statement. The accounts that need to start with a clean or $0 balance going into the next accounting period are revenue, income, and any dividends from January 2019. To determine…

Sage 50cloudaccounting offers three plans; Pro, which is $278.98 annually, Premium, which runs $431.95 annually, and Quantum, with pricing available from Sage. The above journal entries were made in order to account for depreciation expenses and prepaid rent. These examples will show you how to adjust an unadjusted trial balance looks like. If a trial…

Burn rate is one of the simplest, yet most fundamental metrics that investors and startups focus on. It pertains to the total cash spend of the business per month, which demonstrates both growth progress and potential runway that the business has to survive. This article introduces the burn rate concept and the tactics that can…

A less common example of a contra asset account is Discount on Notes Receivable. The credit balance in this account is amortized or allocated to Interest Income or Interest Revenue over the life of a note receivable. By reading these financial statements, an individual will see the full financial picture of the company in question.…

Accurate reporting helps to significantly ease the reconciliation process. The tool pulls all the necessary details from connected platforms, such as fees, payouts, sales, and makes reconciliation really smooth, saving you lots of time and stress. This website is using a security service to protect itself from online attacks. There are several actions that could…

Looking at his accounts receivable aging report, he can deduce he will likely have enough money to cover his upcoming expenses. With accounting software, you’ll be able to generate accounts receivable aging reports. QuickBooks accounting software is extremely flexible, allowing you to customize customer settings to send invoices and reminders. This way, you can stay…

If a company experiences difficulty collecting what it’s owed, for example, it may elect to extend business on a cash-only basis to serial late payers. The total derived from this calculation should match the amount stated in the allowance for doubtful accounts contra account, which is paired with and offsets the trade receivables account. The…

Your income is likely to reflect the size and scale of your auto repair business. The top 10 percent earn more than $65,430, while the bottom 10 percent earn less than $22,610. The lower end of the pay scale is likely to represent what you could make while learning the trade, rather than what you…

This means they’ve earned the Certified Public Accountant designation and obtained licensure in their state. In general, the larger or more complex your business is, the greater the need for both an expert bookkeeper and a certified accountant. Many smaller businesses begin with bookkeeping services, and then add other accounting services as they grow. Whether…