Once the service or product has been provided, the unearned revenue gets recorded as revenue on the income statement. In summary, unearned revenue is a vital concept within accrual accounting, helping provide a more accurate representation of a company’s financial position. By understanding and accurately recording unearned revenue, businesses can better manage cash flow and...Read More

It is essential to note that businesses do not create a new “trade discount account” to post the transaction in the books of accounts. It is neither recorded in the books of accounts of the manufacturer nor the wholesaler/retailer. It is when the seller offers a series of discounts on the product. Here, we calculate...Read More

Content Save time & make more money with DoorLoop Setting Up QuickBooks For Your Rental Property Features where QuickBooks is robust “Makes my accountant happy” Best Real Estate Accounting Software ( This will enable you to make smarter decisions in the future. The benefit of using classes, especially if you have multiple businesses within one...Read More

Whether you’re starting a brand-new business or you have some experience under your belt, creating a solid accounting plan can help you monitor and maintain your financial health. If you select one accounting method and then decide that you’d like to change it after filing your taxes, you’d need to complete IRS Form 3115 to...Read More

Content DIY or Hire a Professional for Bookkeeping and Accounting? Bookkeeping (Accounting) Services Agreement Hire a Bookkeeper Best Full-Service App Build Up Your Contractor Business With We’ll find deductible business expenses that you didn’t know about and auto-categorized for your Schedule C. Use built-in reports to see how your business is doing and take advantage...Read More

The type of services they offer and how frequently they offer them will determine how much to pay them. For example, if you require them for tax planning and filing, payroll management, auditing and consulting, they will charge you more than when all you need is tax preparation. To compare various construction accounting software platforms,...Read More

If you’re a registered massage therapist, Operating Activities is where you see your earned cash from giving massages, and the cash you spend on rent and utilities. When you have a positive number at the bottom of your statement, you’ve got positive cash flow for the month. Keep in mind, positive cash flow isn’t always...Read More

The high-low method is used to calculate the variable and fixed costs of a product or entity with mixed costs. It considers the total dollars of the mixed costs at the highest volume of activity and the total dollars of the mixed costs at the lowest volume of activity. The total amount of fixed costs...Read More

In the cash accounting method, the company records transactions when cash comes in or goes out, so the cash flow statement gives an accurate picture of how much money there is in your company at any given time. http://panteres.com/article/138-green-microwaves—4-looking-greenish-ovens- In the accrual method, transactions are recorded without regard to cash flow. This means the cash flow statement...Read More

The second benefit is that the integrity of the business’s financial statements is less likely to be questioned or attacked. The reason being the revenue and expenditure of the business cannot be counterfeited because it needs the encrypted signature of the third party to accept the validity of the transaction. Therefore, there is no room...Read More