Kategori: Bookkeeping

The cash flow statement is one of the financial statements that show the movement (cash inflow and outflow) of the entity’s cash during the period. The balance sheet is sometimes called the statement of financial position since it shows the values of the entity’s net worth. First, financial statements can be compared to prior periods…

Thus, the date on the check effectively postpones the underlying accounting transaction. This is especially useful if you have recurring bills to pay on a specific date monthly or quarterly or any regular period. Suppose a cheque issued on 4th April 2019 but the date mentioned on it is 19th April 2019. One can encash…

That total is reported in Bad Debt Expense and Allowance for Doubtful Accounts, if there is no carryover balance from a prior period. If there is a carryover balance, that must be considered before recording Bad Debt Expense. The balance sheet https://online-accounting.net/ aging of receivables method is more complicated than the other two methods, but…

For example, if a company has performed a service for a customer but has not yet received payment, the revenue from that service would be recorded as an accrual in the company’s financial statements. This ensures that the company’s financial statements accurately reflect its true financial position, even if it has not yet received payment…

Employers can choose to pay more if they so wish, meaning that employees have to pay less from their own pockets (this could be a great recruitment and retention tactic). Like FICA tax, self-employment taxes also go toward Social Security and Medicare taxes. Typically, if you do not receive a salary like your employees, you…

By combining encumbrance accounting with budgeting, forecasting, and reporting tools, organizations can gain a holistic view of their finances and make more strategic decisions. Integrated systems can automate data flow between different modules, reducing the risk of errors and providing a seamless user experience. The encumbrance accounting entry is done for funds set aside for…

The mitigating factors to your taxable income are known as tax shields. A tax shield is a reduction in taxable income by claiming allowable deductions. For full tax planning help, consider working with a financial advisor. Therefore, based on it the deductions are explained whether legitimate or not. The value for the tax shield approach…

In general, reimbursements for moving expenses are no longer excludable from gross income for the employee or deductible by the company. The use of independent contractors entails different reimbursement expense check meaning rules, chiefly as they are paid via Form 1099. Employers generally opt to include reimbursement payments on the 1099, as opposed to a…