What Is a CPA and How Do I Become One?

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 […]

How to hire a bookkeeper and tips

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 […]

Net Sales Overview, Formula and Components, Income Statement

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 […]

Interest Expense Definition, Formula & Calculation Lesson

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 […]