For purposes of this return, report all rental income from an affiliated organization on line 2. Membership dues can consist of both contributions and payment for goods and services. In that case, the portion of the membership dues that is a payment for goods or services should be reported on line 2, Program Service Revenue. […]

This is where an alternative financing method such as invoice factoring can help. With invoice factoring, businesses sell unpaid invoices to a factoring company, like altLINE, in exchange for a cash advance. This is a particularly common method of financing for small businesses who need an influx in working capital or are looking for a […]

EBITDA and gross profit are different ways that analysts or investors might look at a company. One is not necessarily better than the other since each is designed to measure something different. EBITDA strips interest, taxes, depreciation, and amortization from operating income, while gross profit strips the cost of labor and materials from revenue. For […]

If you have earned revenue but a client has not yet paid their bill, then you report your earned revenue in the accounts receivable journal, which is an asset. Over time, the revenue is recognized once the product/service is delivered (and the deferred revenue liability account declines as the revenue is recognized). However, unearned revenue […]

However, they are shown in the cashflow statement and reduce the owner’s equity in the statement of financial position. This guide covers the ins and outs of business expenses, including common types of expenses, what you might be able to deduct on tax, and why expense management is so important. The cost of goods sold […]

A balance sheet shows you how much you have (assets), how much you owe (liabilities), and how much is left over (equity). It’s a snapshot of your whole business as it stands at a specific point in time. The single-step format is good at giving you a snapshot of your company’s profitability, and not much […]

Every time a word with the prefix bi- in front of it comes up, make sure to look at the usage notes to understand and use the word in the most accurate and precise way. One of the most popular ways to speak with more clarity when using this word is to switch the prefix […]

Project accounting tracks project costs based on the accrual method, measuring revenue, cost, and profitability or a project or project portfolio. With day-to-day detailed financial tracking, project-based accounting offers a plethora of benefits for you and your stakeholders. Not only does financial reporting become easier to manage through separate accounts, but project accounting also helps […]

Project accounting can be tasking and time-consuming if you use manual methods and spreadsheets to track the cost of every project. You can save time and eliminate administrative tasks by automating the project accounting process. While project accountants and their activities are specific and limited by a project, financial accountants have no limits and play […]

Job-order costing focuses on a specific product or service produced for a given customer. Process costs represent a higher level of accuracy than job-order costing, but they are also more complex and time consuming to develop. By dividing the total cost of a process by the total number of units produced, the cost per unit […]