The goal of tax season is to pay as little money as legally possible to the government while keeping as much of your income as you can for yourself. By knowing what to write off in which situations, average taxpayers can save hundreds or even thousands of dollars, either by lowering their tax bills or […]
To become a CPA, a candidate must meet specific educational criteria, which usually includes earning a bachelor’s degree in accounting or a related field. You’ll also need to complete continuing education to remain licensed. CPAs must meet eligibility requirements, obtain state licensure, and follow strict principles established by the AICPA. Licensed CPAs can perform specialized […]
Super pumped up about bookkeeping now and looking for something to get started on right away? Your cash flow statement helps you understand how money moves into and out of your business. The assets section of your balance sheet tells you how much value your business has, while the liabilities section tells you how much […]
Most companies directly report the net sales numbers, and the derivation is given in the notes to the financial statements. However, some companies report gross and net sales both on the income statement itself. https://www.kelleysbookkeeping.com/accounting-for-goods-in-transit/ The table below shows an excerpt from a sample income statement. A contra-revenue account deducts items like discounts and returns […]
In contrast, the interest paid in advance is recorded under “Current Assets” as a prepaid element. It is only fair to separate these expenses from other expenses because the company has little to do with how much of it they are going to bare each year. There are several https://www.online-accounting.net/ metrics and analyses used to […]