Bookkeeping

Multiple pricing increases over the years have driven up the cost of the software, and customer support isn’t the best. QuickBooks Online is limited to 25 users on its most expensive plan but is easier to use, offers tax support, and has stronger mobile apps. Xero often gets praised what is a lifo liquidation for … Read more

When the company earns interest on an employee loan or advance, the company should credit the amount earned to Interest Income and debit Cash or Other Receivables. Maintaining accurate financial records is key for any organization. Recording an advance to an employee is a must for transparency and tracking funds. It allows companies to have clear … Read more

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In the FA2 exam, all relevant information will be provided and candidates will not be partnership accounting expected to calculate the value of goodwill. Assume that Partner A and Partner B admit Partner C as a new partner, when Partner A and Partner B have capital interests $30,000 and $20,000, respectively. What is Partnership Accounting … Read more

This will usually occur to allow the SOPL to provide more relevant information or provide a more faithful representation of an entity’s performance. Whilst this may be an improvement on the absence of general principles, it might be argued that it does not provide the clarity and certainty users crave. The purpose of the statement … Read more

Occasionally, the IRS may extend the tax deadline due to unforeseen circumstances. For example, for the tax year 2020, the IRS extended the filing deadline to May 17, 2021, due to the challenges of the Covid-19 pandemic. Without that extension, Tax Day would have been April 15, 2021. If you missed one of these key … Read more

The role a cash flow statement plays in business planning cannot be overstated. This term refers to the stage when your business’s total revenue equals its operating expenses, signifying that you’re no longer running at a loss but have started making profits. This includes owners who understand the business model inside out, sales leaders with … Read more

These three types of contra accounts are used to reduce liabilities, equity, and revenue which all have natural credit balances. Therefore, for these three, the debit balance actually represents a negative amount. A debit will be made to Contra Expense Account the bad debt expense for $4,000 to balance the journal entry. Although the accounts … Read more