Category: Bookkeeping

Find direct deposits and account credits that appear in the cash book but not in the bank statement, and add them to the bank statement balance. Similarly, if there are deposits appearing in the bank…

Living expenses, bills, debt payments and other obligations should be budgeted out of net income rather than gross income. Making a budget based on gross income will likely cause the budget to be short each…

It helps understand the nature of a company’s asset structure and sources of capital. It provides with each cost of goods sold, operating expenses, and net income as a percentage of total revenue and displays…

After you make the final payment and receive the item, close the suspense account and open a separate asset account. After that, he consulted with Mr. Gladwell who clarified the nature of the operation. His…

However, the market value per share—a forward-looking metric—accounts for a company’s future earning power. As a company’s potential profitability, or its expected growth rate, increases, the corresponding market value per share will also increase. Book…

When you use an invoice template designed for freelancers, it streamlines the process of billing your clients. A well-crafted freelancer invoice template ensures you include all the essential information, making it easier for clients to…

According to a recent ManpowerGroup survey, seven out of 10 employers reported talent shortages, with technology positions the hardest to fill. Cultivate your organization’s leaders by acknowledging their strengths and achievements while clearly communicating your…

With better operating support, your organization will be in a much better position to achieve key goals. It’s worth raising this point rather than constantly running into cash flow problems by trying to do more…

The two specific types of adjustments are accrued revenues and accrued expenses. Entries are made with the matching principle to match revenue and expenses in the period in which they occur. Adjustments reflected in the…

Here we look at interest expense in the context of evaluating a company’s profitability, as well as its relevance for your personal finances. Our simplified model assumes the mandatory repayment of the original principal is…