Category: Bookkeeping

This ending retained earnings balance can then be used for preparing the statement of shareholder’s equity and the balance sheet. A company’s retained earnings statement begins with the company’s beginning equity. This number is found on the company’s balance sheet and tells you how much money the company started with at the beginning of the period. While they…

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These applications automatically crunch numbers, perform data entry, track performance metrics, and produce business reports. After correctly entering your data, the software guarantees accurate calculations, which provides added comfort in tax season. Income statements, often referred to as profit and loss statements, summarize a small business’s revenues and expenses over a specific period. Examples of…

We encourage you to evaluate each QuickBooks Certified ProAdvisor thoroughly to ensure they are the right fit for your business. If you need to track a check or cash transaction manually, you can record it directly in QuickBooks in a few minutes. You can also add bills in QuickBooks when you receive them so that…

For example, those companies that sell goods that frequently increase in price might use LIFO to achieve a reduction in taxes owed. When inventory is artificially inflated, COGS will be under-reported which, in turn, will lead to a higher-than-actual gross profit margin, and hence, an inflated net income. Accountants use “inventoriable costs” to define all…

Each user has their own login credentials, which can be customized to limit access to sensitive information. There’s also a feature that facilitates inviting your accountant to the platform, so they can have direct access to your data. If you don’t know much about accounting, you’ll probably want to shy away from QuickBooks Pro, Premier,…

This takes your total revenue and subtracts all your expenses (direct and indirect) to find what percentage of revenue is actual profit. This formula will give you the percentage of revenue that exceeds your basic production costs. Direct costs are directly related to producing a product or delivering a service. Indirect costs, on the other hand,…

Yes, these training courses are updated regularly based on the latest feature updates or changes made by Intuit, the company behind QuickBooks. About half of the tutorials have an average runtime of five minutes or less, and the longest tutorial is slightly less than 14 minutes long. Each QuickBooks tutorial includes a video where we…

Unlike US GAAP, inventories are generally measured at the lower of cost and NRV3 under IAS 2, regardless of the costing technique or cost formula used. Equipment and supplies you’ve bought to run your business, such as work tools, vehicles and stationery, typically aren’t treated as inventory. Raw materials inventory is any material directly attributable to the…

Inventory accounting is a critical aspect of managing a company’s inventory assets. Accurate valuation and proper accounting methods are essential for financial reporting, profit analysis, and taxation purposes. Company B, a manufacturer facing rising material costs, implemented the LIFO inventory accounting method to optimize inventory turnover. Inventory Write-Off: Best Practices for Managing Unsold Stock (2023)…