Category: Bookkeeping

Both methods are valid approaches in accounting, but they serve different purposes and have implications for how a law firm perceives its financial position. It should be noted that some law firms have accounting software that is capable of producing both cash and accrual statements. Many law firms commonly use cash basis accounting while banks…

The balance sheet only shows the assets, liabilities, and equity at one particular point in time and does not illustrate an overall trend in itself. The income statement provides several advantages in financial reporting, such as helping to determine operational efficiency and comparing profitability with competitors. You typically prepare an income statement over key periods…

These are clearly all serious safety issues and do deserve attention. The focus also tends to be on individual behaviors as injury causes. The validity of these numbers has been challenged many times. His analysis was based on over 1.7 million accident reports from over 300 companies. This theory has been modified over the years,…

Small businesses may struggle to keep forecasts updated and, in turn, won’t find them useful. For example, if procurement logs expenses in spreadsheets that finance can’t access, those expenses might not be included in future budgeting and forecasting. The forecast will most likely miss crucial information if teams don’t share financial data. If your company…

For sellers, these terms can create hidden opportunity costs in business, especially when cash flow is delayed or the administrative burden increases. One of the biggest benefits of opportunity cost analysis is avoiding low-return investments. When you’re evaluating how to calculate opportunity cost, including these intangible factors gives you a fuller picture of your business…

This non-financial information includes significant changes in the business, contracts, related parties’ transactions, and any other essential details. This is to ensure that the lack of information does not mislead the users of financial information. Full disclosure typically means the real estate agent or broker and the seller disclose any property defects and other information…

FreshBooks will help you stay organized with a user-friendly interface that keeps things simple. This method is widely utilized in various financial management software and accounting systems, consolidating its significance in modern financial data management. It plays a crucial role in organizing financial information, ensuring that all financial transactions are properly recorded and classified. By…

The biggest difference between these two calculations is that cost of revenue also includes costs beyond the scope of production, such as marketing and distribution. Importantly, COGS only includes the costs of goods that have actually been sold, meaning they’ve generated revenue during a specific time period. COGS comprises only direct costs, which are directly…

The right choice keeps records accurate, meets tax rules, and supports planning. Most experts describe bookkeeping as the foundation; it focuses on recording transactions in a consistent, organized way. Accounting builds on that foundation to create financial statements, analyze results, and support decision-making. Bookkeeping began as a simple way to track what people earned and…

You can make an ACH transfer to any person or entity that has a bank account. Some banks may even charge you a fee to receive a wire from someone, which can run anywhere from $5 to $15. Wire transfer fees can run around $30 for domestic wires and $50 for international wires. Wire transfers…