Category Archives: Bookkeeping

Rental Property Accounting & Bookkeeping 101: Landlord’s Guide

Create a bank account for each individual rental property, along with a debit card or credit card. This makes it easier to track transactions by property and avoids the risk of commingling your personal expenses with your business expenses. This includes both financial records and any other important documents related to your rental property. Good […]

Going concern concept MaRS Startup Toolkit

Content Going Concern Concept Business entity concept Substantial doubt was raised but was alleviated by management’s plans (substantial doubt was alleviated) Accounting principle: Stable dollar assumption Tax Credit Opportunities for Manufacturers Under the IRA The importance of the going concern principle Step 1: Determine whether conditions and events raise substantial doubt It will also state […]

10 6 Equity method investments disclosures

We began by discussing the various classes of investments subject to specific accounting treatments. The unrealized profit from the downstream transaction will be $80,000 since 80% of the stock lies unsold. As for the upstream transaction, no profits have been realized since no goods have been sold. A company’s assets are of two types – […]

Contra Asset Examples, How a Contra Asset Account Works

For example, if a piece of heavy machinery is purchased for $10,000, that $10,000 figure is maintained on the general ledger even as the asset’s depreciation is recorded separately. Accounts receivable (A/R) has a debit balance, but the allowance https://simple-accounting.org/nonprofit-bookkeeper-vs-accountant-who-should-you/ for doubtful accounts carries a credit balance. Rather, it is an adjunct account or a […]

Know Accounts Receivable and Inventory Turnover

Similarly, accounts payable turnover (sales divided by average payables) is a short-term liquidity measure that measures the rate at which a company pays back its suppliers and vendors. Common forms of turnover include accounts receivable turnover, inventory turnover, portfolio turnover, and working capital turnover. Companies can better assess the efficiency of their operations through looking at […]

7 Functions Every Accounting Department Needs to Master in 2021

Content Finance The Accounting Department Does Tax Compliance – Annual Tasks of the Accounting Department Accounts Receivable It Makes Reports For You – Why Accounting Software is Helpful How to run an effective accounting department? Information systems functions every Accounting Department needs to master How to Account for Bad Debts With the Direct Write-Off Method […]

Prepaid Expenses Examples, Accounting for a Prepaid Expense

Content Understanding Goodwill in Balance Sheet – Explained Deferred Items Adjusting entry for prepaid insurance How do you adjust entries for prepaid insurance? This journal entry records the transaction concerning the purchase of insurance premiums by a company within a specified accounting cycle. You prepaid for a one-year business license during the month and initially […]