However, there are several actions all nonprofits need to take to ensure data quality and reliability. And, if you need further advice, an experienced bookkeeper can give you their perspective on your budget. Strategic financial planning poses a unique challenge in the nonprofit sector. Unlike businesses that can focus primarily on profit margins, nonprofits must […]

This account is used to record both increases and decreases to profits resulting from errors. Payment is the transfer of one form of goods, services, or financial assets in exchange for another form of goods, services, or financial assets. Account reconcilement is the process of confirming that two separate records of transactions in an account […]

Sometimes a corporation decides to purchase its own stock in the market. A company might purchase its own outstanding stock for a number of possible reasons. It can be a strategic maneuver to prevent another company from acquiring a majority interest or preventing a hostile takeover. A purchase can also create demand for the stock, […]

However, it is important to consider the costs and benefits of listing before making a decision. Another situation that sometimes arises is that someone who loaned money to the business will agree to accept stock in repayment of the loan. In that case, no adjustment to the asset side of the balance sheet is necessary. […]

The net profit is the profit that remains after all the expenses are subtracted from the revenue. A company’s revenue is all the money it generates over an accounting period. Revenue and net sales both describe income for a company, but there are some important differences. It is the primary sales figure that analysts review […]

Full-Service Bookkeeping doesn’t include sending invoices, paying bills, or management of inventory, accounts receivable, or accounts payable. The service doesn’t include financial advisory services, tax advice, facilitating the filing of income or sales tax returns, creating or sending 1099s, or management of payroll. QuickBooks Online offers Full Service Payroll for an additional cost. Intuit Bookkeeping […]

For example, if a company receives an invoice for services in January but doesn’t pay the bill until February, the expense would show up in February. Let’s now go back to the same example of the bulk sale agreement between two companies. Now, in the books of accounts of the vendor, there will be two […]

The revenue that an organization earns is essential to the ongoing survival of the company and determines its ability to become profitable. It is an indicator of the organization’s ability to sell goods and services to customers. Accrued revenue is a concept that just about everyone can understand, because it mirrors how the vast majority of workers […]

However, it’s essential to note that tax authorities may have specific rules and guidelines for depreciation methods. Companies need to ensure they comply with these rules when choosing an accelerated depreciation method like the double declining balance method, or they may face penalties or adjustments. Depreciation is a fundamental concept in accounting, representing the allocation […]

Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support. However, bookkeeping and accounting clerk jobs are expected to decline, with a 6% fall in jobs over the same period, due to pressure from automation and technology. To transition from bookkeeper to accountant, you’ll need to […]