Category: Bookkeeping

There are a few oddities in accounting and finance, the largest being that the financial world typically works on the assumption of a 360-day year, rather than the calendar’s 365-day year. Thus, when calculating interest receivable on a note, it’s important that you calculate interest based on a 360-day year. Companies often extend credit to… Continue reading IAS 18 Revenue

We should have an Ending Net Book Value equal to the Salvage Value of $2,000. With other assets, we may find we would be taking more depreciation than we should. In the last year, ignore the formula and take the amount of depreciation needed to have an ending Net Book Value equal to the Salvage… Continue reading Double Declining Balance Method: Formula & Free Template

Save more by mixing and matching the bookkeeping, tax, and consultation services you need. The beginning of period (BoP) book value of the PP&E for Year 1 is linked to our purchase cost cell, i.e. Per guidance from management, the PP&E will have a useful life of 5 years and a salvage value of $4… Continue reading Declining Balance Depreciation Calculation Example

If you do not have the documentation, you cannot back up your costs if there is an audit. Merchant processors, loans, and lines of credit may also be taken into account. The magic happens when our intuitive software and real, human support come together. Book a demo today to see what running your business is… Continue reading The Ultimate Guide To Bookkeeping for Independent Contractors

If there is an audit, you won’t be able to support your expenditures if you don’t https://www.inkl.com/news/the-significance-of-construction-bookkeeping-for-streamlining-projects have the necessary paperwork. Before you begin working for a client, you will typically be required to sign a written contract (thus the term “contractor”). Journal entries record the day-to-day financial activities of your business. A firm may… Continue reading The Ultimate Guide To Bookkeeping for Independent Contractors

The prudence principle in accounting is often described using the phrase “Do not anticipate profits, but provide for all possible losses.” There are many liabilities that are not certain either in terms of amount or in terms of date, but they have a high possibility of occurrence. In such cases, the liability is recorded, and… Continue reading Prudence Concept In Accounting Explanation & Examples

The intent is to create a reserve against those contractor invoices that are probably not going to be paid, even though the bookkeeper cannot yet specifically identify which invoices will not be paid. Like the other GAAPs, the principle of prudence is there to provide accountants with a solid base and philosophy on which to… Continue reading What is Prudence Concept in Accounting?

Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs. Take your learning and productivity to the next level with our Premium Templates. CFI is the global institution behind the financial modeling and valuation analyst FMVA®… Continue reading Interest Revenue: Calculation & Formula

Automate supplier payments throughout the SEPA zone with SEPA Credit Transfer (SCT). 95% of the transactions are matched automatically with the financial records. All operations are processed in less than 90 milliseconds, faster than the blink of an eye. Bank & Cash This is doneby doing a reconciliation on the accounts receivable account and/or the… Continue reading Odoo Review 2024: Features, Pros & Cons

The large selection of apps may provide flexibility but could also overwhelm or confuse some users, depending on the company’s specific requirements. Get your accounting entries created automatically in standard price, average price of FIFO. For fiduciaries, the integration of a documents app and a modern interface adds to efficiency. The ability to control payables,… Continue reading Odoo Accounting Features