Category: Bookkeeping

Both involve amounts owed, and the main differences between notes payable vs accounts payable lie in the circumstances they arise from and their implications for a company’s financial health. A company may borrow money from lenders to finance an important investment, cover operating expenses, or support business expansion. Notes Payable are one form of such …

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Once a credit sale happens, the customers get a specific time limit to make the payment. Every company monitors this period and tries to keep it as short as possible so that the receivables do not remain blocked for a long time. In order to calculate the average collection period, the company’s accounts receivable (A/R) …

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When deciding whether to invest in a project or when comparing projects having different returns, a decision based on payback period is relatively complex. The decision whether to accept or reject a project based on its payback period depends upon the risk appetite of the management. This method provides a more realistic payback period by …

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Remember, once you block someone, they won’t be able to reach you via calls, messages, or FaceTime. However, they can still leave a voicemail, but you won’t get a notification for it. After blocking a number, you’ll no longer receive phone calls, messages, or FaceTime from that number. When a blocked number tries to send …

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If the bank loans doot meet the following requirements, they are not recognized as the long-term liability in the company’s balance sheet. It will be shown as notes to the financial statement, and disclosures are required in the financial statements. An obligation that cannot be measured reliably will most probably be recognized as a contingent …

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The most challenging aspect of cost allocation is handling overhead costs. Overhead costs are the general business expenses that are essential for running the construction company but are not directly attributable to any single project. This includes costs like office rent, insurance, executive salaries, and marketing expenses. Standard costing is different from job costing – …

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Therefore, the costs of storing materials are part of manufacturing overhead, whereas the costs of storing finished goods are a part of selling costs. Remember that retailers, wholesalers, manufacturers, and service organizations all have selling costs. The key difference between product cost and period cost is that product concurs when a company produces any products. …

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A variance in accounting is the difference between actual and budgeted, or standard, amounts. Variances are computed to identify and analyze the reasons for differences between expected and actual results. You should identify the potential corrective actions that can address the variances and evaluate their pros and cons. You should consider the expected benefits, costs, …

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Bookkeeper360 can work with a variety of payroll solutions, including top providers like Gusto and ADP. It also gives you the option to integrate Xero with these different solutions to sync your payroll data. Bookkeeper360 took a small hit in our rubric due to the inability of filing sales tax returns, and I recommend looking …

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They are always connected to a significant risk related to the potential for management override of controls. This particular CPA firm pulled an extract from the general ledger and 22,000 entries were flagged as manual journal entries. No human could go through every one of those and say whether they were indicative of fraud. I …

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