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Asset classification definition

Accounting Tools

As an example of how accounting rules may be applied to the assets within a group, all of the fixed assets in the computer software group could be assumed to have the same useful life , to which is applied a standard depreciation methodology. Includes cash in checking accounts, petty cash, and deposit accounts. Fixed Assets.

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Asset accounts definition

Accounting Tools

Bank deposits. Computer equipment. May include not only computer equipment, but also the cost of more expensive software packages. The general categories of asset accounts are as follows, along with the accounts commonly used within each category: Current Asset Accounts Cash. Includes bills and coins on hand, such as petty cash.

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Accounting Automation: The Definitive 2023 Guide

Future Firm

This means no more: Manual data entry into a computer. The post Accounting Automation: The Definitive 2023 Guide appeared first on Future Firm. Today, accounting automation uses technology to, in many instances, completely remove the manual parts of an accountant’s work. Manually reconciling bank statements. What do you think?

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In transit definition

Accounting Tools

In accounting, the "in transit" term is most commonly applied to deposits that are in transit from a company to its bank, resulting in a reconciling item on the company's bank reconciliation if the checks are in transit at the end of a month. Related Courses Accounting for Freight What is In Transit?

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Depletion method definition

Accounting Tools

Thus, it is used in situations where a company has recorded an asset for such items as oil reserves, coal deposits, or gravel pits. Depletion is a periodic charge to expense for the use of natural resources. This is the cost to prepare the property for asset extraction, which includes the cost of such items as tunnels and wells.

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Payroll definition

Accounting Tools

Create Payments The creation of payments usually involves entering the pay information into a computer system or sending it to a third-party payroll processor, which results in either paychecks , direct deposit payments, or payments into a payroll debit card. The result of this step is the net pay due to each employee.

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Lockbox system definition

Accounting Tools

The bank opens the incoming mail, deposits all received funds in the company's bank account, and scans the payments and any remittance information. Continually shifting lockbox locations is not recommended, since it annoys the accounts payable employees of customers, which must keep updating the pay-to addresses in their computer systems.