Accounting Tools

NOVEMBER 3, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook The accrual basis of accounting is used to record revenues and expenses in the period in which they are earned, irrespective of the timing of the associated cash flows. How do we convert accrual basis accounting records to the cash basis?

Accruals 75

Accruals Accounting Accounting Accounts Payable 75

Accounting Tools

APRIL 12, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is the Cash Basis of Accounting? The cash basis of accounting is the practice of recording revenue when cash has been received, and recording expenses when cash has been paid out. The accrual basis is most commonly used by larger businesses.

Accruals 75

Accruals Financial Statements Accounting Accounting 75

Accounting Tools

JULY 26, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are the Basic Accounting Concepts? There are a number of conceptual issues that one must understand in order to develop a firm foundation of how accounting works. These basic accounting concepts are noted below.

Financial Statements 76

Financial Statements Accruals Accounting Accounting 76

Accounting Tools

JULY 12, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is Accrual Accounting? Accrual accounting is the recording of revenue when earned and expenses when incurred. Accrual accounting results in the most accurate picture of how well a business is actually performing.

Accruals 40

Accruals Accounting Accounting Financial Statements 40

Accounting Tools

MAY 14, 2023

Related Courses Accountants' Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are the Basic Accounting Principles? Accounting principles are the rules that an organization follows when reporting financial information. A number of basic accounting principles have been developed through common usage.

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Accounting Tools

DECEMBER 23, 2024

A virtual close involves the use of fully integrated company-wide accounting systems to produce financial statements at any time, on demand. The virtual close requires particular attention to the following areas: Centralized accounting. Standardized accounting. What is the Virtual Close? Error tracking.

Financial Statements 40

Financial Statements Accruals Accounting Software Auditing 40

Accounting Tools

SEPTEMBER 22, 2023

Related Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management A benefits accrual occurs when a benefit-related expense is recognized despite the absence of a supplier invoice. This approach is required under the accrual basis of accounting.

Accruals 40

Accruals Accounting Accounting Payroll 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Governmental Accounting What is Modified Accrual Accounting? Modified accrual accounting combines aspects of accrual basis accounting with cash basis accounting. The standards for modified accrual accounting are set by the Government Accounting Standards Board (GASB).

Accruals 40

Accruals Accounting Accounting Financial Statements 40

Accounting Tools

OCTOBER 25, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is the Accounting Breakeven Point? The accounting breakeven point is the sales level at which a business generates exactly zero profits , given a certain amount of fixed costs that it must pay for in each period.

Accruals 75

Accruals Accounting Accounting Financial Analysis 75

Accounting Tools

JULY 13, 2023

Related Courses Accountants' Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is an Accrual? An accrual allows a business to record expenses and revenues for which it expects to expend cash or receive cash, respectively, in a future period. It is an essential element of the accrual basis of accounting.

Accruals 40

Accruals Financial Statements Bookkeeping Billing 40

Accounting Tools

MAY 24, 2023

By using a soft close, the accounting department can issue financial statements very quickly and then return to its normal day-to-day activities. Or, they may have more variable results from month to month because accruals are not being used to smooth out reported results over multiple reporting periods.

Accruals 75

Accruals Financial Statements Account Reconciliation Auditing 75

Accounting Tools

SEPTEMBER 2, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is the Accruals Concept in Accounting? An accrual is a journal entry that is used to recognize revenues and expenses that have been earned or consumed, respectively, and for which the related cash amounts have not yet been received or paid out.

Accruals 40

Accruals Financial Statements Invoicing Bookkeeping 40

Accounting Tools

MARCH 26, 2023

Related Courses Accountants' Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What are Accounting Principles? Accounting principles are essentially general guidelines to follow when recording and reporting accounting transactions. They provide some structure to the accounting process.

Financial Statements 75

Financial Statements Accounting Accounting Accruals 75

Accounting Tools

DECEMBER 20, 2023

What is an Accounting Entry? An accounting entry is a formal record that documents a transaction. In most cases, an accounting entry is made using the double entry bookkeeping system , which requires one to make both a debit and credit entry, and which eventually leads to the creation of a complete set of financial statements.

Accruals 75

Accruals Accounting Accounting General Ledger 75

Nanonets

SEPTEMBER 21, 2023

When it comes to managing your business finances, it's essential to understand crucial accounting terms like accrual and deferral. These terms define how you recognize revenue and expenses, and they play a significant role in  financial reporting.

Accruals 40

Accruals Financial Statements Accounting Accounting 40

Accounting Tools

JUNE 5, 2024

What is an Accrual? An accrual allows a business to record expenses and revenues for which it expects to expend cash or receive cash, respectively, in a future period. It is an essential element of the accrual basis of accounting. A deferral refers to the delay in recognition of an accounting transaction.

Accruals 40

Accruals Financial Statements Bookkeeping Invoicing 40

Accounting Tools

MAY 21, 2023

Related Courses Bookkeeping Guidebook Closing the Books New Controller Guidebook What are Accounting Adjustments? An accounting adjustment is a business transaction that has not yet been included in the accounting records of a business as of a specific date. Recognizing revenue that has not yet been billed.

Accruals 75

Accruals Accounting Accounting Billing 75

Accounting Tools

JUNE 12, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Accrual Basis? Accrual basis is a method of recording accounting transactions for revenue when earned and expenses when incurred. The alternative method for recording accounting transactions is the cash basis.

Accruals 40

Accruals Financial Statements Bookkeeping Invoicing 40

Accounting Tools

NOVEMBER 5, 2023

Related Courses Bankruptcy Tax Guide Essentials of Corporate Bankruptcy What is the Liquidation Basis of Accounting? Liquidation basis accounting is concerned with preparing the financial statements of a business in a different way if its liquidation is considered to be imminent. Forced liquidation.

Accruals 71

Accruals Accounting Accounting Financial Statements 71

Accounting Tools

SEPTEMBER 8, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook New Controller Guidebook Most accounting tasks can be divided into financial accounting and managerial accounting. There are a number of differences between financial and managerial accounting, which are noted below.

Financial Statements 76

Financial Statements Accounting Accounting Financial Accounting 76

Accounting Tools

MARCH 31, 2023

Related Courses Bookkeeping Guidebook Closing the Books The Year-End Close What is an Under Accrual? An under accrual is a situation in which the estimated amount of an accrual journal entry is too low. This scenario can arise for an accrual of either revenue or expense.

Accruals 40

Accruals Financial Statements Accounts Payable Accounts Payable 40

Accounting Tools

JUNE 20, 2023

Related Courses Bookkeeping Guidebook CFO Guidebook New Controller Guidebook What are the Types of Accounting? There are several types of accounting that range from auditing to the preparation of tax returns. Accountants tend to specialize in one of these fields, which leads to the different career tracks noted below.

Accounting 75

Accounting Accounting Financial Statements Auditing 75

accountingfly

NOVEMBER 21, 2024

Top Remote Candidates This Week Are you in need of remote accountants? Our ‘ Always-On Recruiting ‘ program allows you to connect with highly skilled and experienced remote accounting candidates without any upfront costs. Here are some of our top remote accounting candidates for this week.

CPA 52

CPA Accounting Accounting Payroll 52

Accounting Tools

JULY 8, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook Closing the Books What are the Steps in the Accounting Process? The accounting process is three separate types of transactions used to record business transactions in the accounting records. This information is then aggregated into financial statements.

Financial Statements 75

Financial Statements Accounting Accounting General Ledger 75

SMB Accounting and Consulting

NOVEMBER 4, 2021

This answer can vary depending on whether the company’s books are kept on a cash basis or accrual basis, but the general premise is the same. This is why all 3 financial statements (balance sheet, profit and loss or income statement, and cashflow statement) are imperative to review and understand.

Accruals 98

Accruals Financial Statements Accounts Receivable Accounts Receivable 98

Accounting Tools

AUGUST 5, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook Reasons for Monthly Accruals Accruals allow a business to record expenses and revenues for which it expects to expend cash or receive cash, respectively, in a future period. Related Articles The Difference Between Accruals and Deferrals What Is an Over Accrual?

Accruals 40

Accruals Financial Statements Bookkeeping Billing 40

Accounting Tools

JUNE 7, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook Closing the Books Posting in accounting is when the balances in subledgers and the general journal are shifted into the general ledger. An accounting manager may elect to engage in posting relatively infrequently, such as once a month, or perhaps as frequently as once a day.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

AUGUST 6, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Dual Aspect Concept? The dual aspect concept states that every business transaction requires recordation in two different accounts. This is the only format that auditors will accept if they are to issue opinions on financial statements.

Accruals 75

Accruals Financial Statements Bookkeeping Accounts Payable 75

Accounting Tools

JULY 12, 2024

What is Governmental Accounting? Governmental accounting maintains tight control over resources, while also compartmentalizing activities into different funds in order to clarify how resources are being directed at various programs. Some types of funds use a different basis of accounting and measurement focus. Debt service fund.

Accounting 75

Accounting Accounting Accruals Collections 75

Accounting Tools

MAY 15, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is the Allowance for Doubtful Accounts? The allowance for doubtful accounts is paired with and offsets accounts receivable. It represents management’s best estimate of the amount of accounts receivable that will not be paid by customers.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accounting 75

Accounting Tools

MAY 21, 2023

Related Courses The Balance Sheet The Interpretation of Financial Statements What are the Contents of a Cash Basis Balance Sheet? Under the cash basis of accounting , transactions are only recorded when there is a related change in cash. Used under the accrual basis. Accounts receivable. Accounts payable.

Accruals 76

Accruals Accounts Payable Accounts Payable Account Receivables 76

Accounting Tools

JULY 20, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is Net Income? This amount is generally calculated using the accrual basis of accounting , under which expenses are recognized at the same time as the revenues to which they relate.

Accruals 75

Accruals Deposits Financial Analysis Financial Statements 75

Accounting Tools

MAY 7, 2024

This layout is quite useful for evaluating the results of a business over a period of time, and so is heavily used by financial analysts. Cash Basis Income Statement The cash basis income statement only contains revenues for which cash has been received from customers, and expenses for which cash has been paid to suppliers.

Accruals 98

Accruals Financial Statements Accounting Accounting 98

Accounting Tools

MAY 14, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook Overview of Accounts Receivable When goods or services are sold to a customer , and the customer is allowed to pay at a later date, this is known as selling on credit , and creates a liability for the customer to pay the seller.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables General Ledger 75

Accounting Tools

MAY 21, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Profit Ratio? It is a key indicator of the financial health of an organization. And third, it is easily adjusted with accounting chicanery, such as using aggressive accruals or altering accounting policies.

Accruals 75

Accruals Financial Statements Tax Accounting 75

Accounting Tools

OCTOBER 4, 2023

Related Courses The Interpretation of Financial Statements What is Profitability? Profitability is a situation in which an entity is generating a profit. Profitability arises when the aggregate amount of revenue is greater than the aggregate amount of expenses in a reporting period.

Accruals 75

Accruals Financial Statements Tax Accounting 75

Accounting Tools

MAY 21, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Journal Entry? A journal entry is used to record a business transaction in the accounting records of a business. The general ledger is then used to create financial statements for the business.

General Ledger 75

General Ledger Financial Statements Accruals Payroll 75