When a company receives payment from a client for the sale of a product, the cash received is tabulated in net sales along with the receipts from other sales and returns. The cost of sales is subtracted from that sum to yield the gross profit for that reporting period. As used in accounting, inventory describes […]
What is a Ledger in Accounting? Is There a Difference with a Journal and a Ledger? Read More »
As a small business owner, it can be tough to balance seeing your clients and managing the administration tasks necessary to keep your business running smoothly. If you use your WiFi or mobile phone for work, you can claim the costs against your tax bill. However, you can only claim back the portion you used
The leftover money belongs to the owners of the company or shareholders. Many subaccounts in this category might only apply to larger corporations, although some, like retained earnings, can apply for small businesses and sole proprietors. Equity accounts, like common stock or retained earnings, increase with credits and decrease with debits. For example, when a
Debit vs Credit: An Accounting Reference Guide +Examples Read More »
In this way, a direct comparison can be made between the profitability of the project and the desired rate of return. Performing NPV analysis is a practical method to determine the economic feasibility of undertaking a potential project or investment. Cash flows are any money spent or earned for the sake of the investment, including
Net Present Value NPV: What It Means and Steps to Calculate It Read More »
In a classified balance sheet, financial data is introduced in depth. The parts of assets, liabilities, and equity are separated into more sub-headings for providing in-depth data to the clients. The parts of assets and liabilities are likewise named current and non-current. Large organizations use a classified balance sheet as the format that delivers in-depth
Classified Balance Sheet Definition Format Examples Read More »
QuickBooks Online is a cloud-based software that can be accessed anytime and anywhere from any internet-enabled device and has monthly subscription options. Meanwhile, QuickBooks Desktop is an on-premise software that needs to be installed on the computer where you use it and is available as an annual subscription. For more information about the differences between
The above states will be the new journal entry for revenue recognition. To start with, I suggest creating a liability account to track the number of retainers you receive from your customers. At Virta, we have a really capable in-house marketing team, but our scope of needs is so wide that external help is very
