Double-entry Bookkeeping What is Bookkeeping
Similarly, if a company purchases a print ad, its cash account decreases while its expense account, under the account category of advertising expense, increases. Double-entry bookkeeping is an accounting method where each transaction is recorded[…]
Realization Principle Definition, Example, How it Works?
Known as pay-as-you-go, metered billing, or usage-based pricing, this model is increasingly popular across industries like cloud computing, IaaS, SaaS. While it offers clear benefits for both users and providers, this flexibility brings unique challenges[…]
Units of Production Depreciation: How to Calculate & Formula
For example, a machine may be depreciated on the basis of output produced during a period in proportion to its total expected production capacity. Therefore, useful life of an asset under Units of Production Method[…]
What Are Stale-Dated Checks?
Uncashed checks to vendors, contractors, employee payroll, and distributions to stockholders are all potential unclaimed property. While a bank does have the right to refuse an old check — and even return it to the original[…]
Online Bookkeeping Services for Small Businesses Bench Accounting
With an “accounting department as a service” model that is both flexible and scalable, we combine technical capabilities across multiple resources into one service offering. A lot of those systems actually have built in either[…]
How to Read & Understand a Balance Sheet
Browse our list of top accounting firms and learn more about their services in Capterra’s hiring guide. This article is for anyone who wants to understand how to prepare a balance sheet, which is often[…]
Gross Margin Definition, Components, Significance, & Factors
Since the cost of producing goods is an inevitable expense, some investors view gross margin as a measure of a company’s overall ability to generate profit. The gross margin can also provide insights into which[…]
Deferred Rent for ASC 842 Explained w Examples, Entries
One such ratio is the accounts receivable turnover ratio, which measures how efficiently a company collects its receivables. A higher turnover ratio indicates that the company is effective in collecting rent, translating to better cash[…]
Cost of Sales Meaning, Formula, Calculation, Excel Examples
In product-based businesses, Cost of Sales or Cost of Goods Sold (COGS) includes the costs of acquiring or producing the items that the company sells. For example, for a smartphone manufacturer, COGS would encompass the[…]
Accounting Enigmas: Undeposited Funds Account
You have to think of receiving payments in QuickBooks as you sitting at the office recording your various customer payments against an invoice or invoices. This is where the undeposited funds account comes into play. When you[…]
