Kategori : Bookkeeping

When a company writes a check, the company’s general ledger Cash account is credited (and another account is debited) using the date of the check. Therefore, a check dated June 29 will be recorded in the company’s accounts using the date of June 29, even if the check clears (is paid through) the company’s bank account one week later. Vendor...

The auditors also noted that even canceling contracts, as DOGE has done, can add to costs, rather than reduce them, in the long run. For instance, often the government negotiates deals on large purchases where it gets discounts for bulk purchases. This was the case with many of the software licenses that DOGE said it wanted to cut. Federal workers...

In the realm of auditing, existence or occurrence assertions play a pivotal role in the verification of financial statements. These assertions are the auditor’s tools to confirm that assets or liabilities of the company exist at a given date, and that recorded transactions have occurred during a specific period. This is crucial because it addresses the risk of overstatement of...

The short tax period begins on the first day after the close of your old revenue and expense year tax year and ends on the day before the first day of your new tax year. To make the election for the week tax year, attach a statement with the following information to your tax return. If using the Year End...

However, they may also be reported separately, in which case, they’ll need to be added together for use in the cash ratio formula. One of the advantages of a quick ratio is that it is fairly easy and straightforward to calculate. The quick ratio calculation is relatively easy to understand, particularly when comparing a company’s liquidity against a target figure...

Now that you have a solid understanding of what’s law firm chart of accounts included, let’s look at what’s not included. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over 35 years of diverse financial management experience. He is an expert on personal finance, corporate finance and real estate and has assisted thousands of clients...

Since creating this reconciliation is about as much work as just preparing an indirect statement, most companies simply choose not to use the direct method. The direct method provides a clear picture of actual cash inflows and outflows. It shows specific cash transactions, making it easier to understand the business’s cash position. The direct cash flow statement method is the...