Category: Bookkeeping

In scenarios where cheques or corporate credit cards present too much of a hassle, petty cash comes across as a quick fix because it does not entail a lengthy process or procurement system. That said, petty cash expenses will also require reconciliation like any other business transaction to avoid leakage and fraudulent practices. For example,…

Now let us understand the concept of marginal cost formula with example. For example, if a pharmaceutical company spends 5 M developing a drug that fails clinical trials, that 5 M is a sunk cost—it’s gone, regardless of future actions. However, if the R&D leads to a patent or marketable product, those costs are capitalized (recorded…

Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support. Doing asset depreciation manually, even for seasoned professionals, is prone to error. The credit is made to the accumulated depreciation instead of the cost account. Now, let’s also consider the following T-accounts for the accumulated depreciation.…

This comparison will allow you to see how well your company performs in relation to Grocery Store Accounting similar businesses in terms of generating and managing cash flows. In this article, we will guide you through the process of performing a vertical analysis of your cash flow statement. We’ll start by explaining the various categories…

To close the income summary account, the balance in the account needs to be transferred to a capital account (generally the retained earnings). This means in order to close an expense account at the end of a financial year, a credit entry needs to be generated with the balance of the expenses. The other side…

This is why Sales Returns and Allowances, as well as Sales Discounts, are reported separately from the gross sale as contra-sale accounts on the income statement above. As seen in the income statement above, sales discount comes under Gross sales which is in the revenue section, and not in the expenses section. It is usually…

It’s simply your total income generated by sales, minus any returns, allowances, and discounts. It’s one of the top line metrics you’ll see on a company’s income statement of product-based businesses, and it’s usually measured over weekly, monthly or annual accounting periods. Revenue is the total Insurance Accounting income generated from sales, while net income…

Yes, many therapists use software like QuickBooks, Xero, and FreshBooks to manage their financial records. https://www.bookstime.com/articles/bookkeeping-for-therapists These platforms offer features that make income tracking, client billing, and expense management easier for therapy practices. QuickBooks, for example, is widely recognized for its versatility and user-friendly interface, which is ideal for small business owners like private practice…

A lot of people use their income minus their federal taxes to calculate this figure, though others will get more specific and subtract their state taxes if they have any. While the net income after taxes calculation is one of the most solid measures of a company’s performance, numerous accounting scandals over the years have…