Your opening balance will be the closing balance of the last reporting period, ideally, zero, with all accounts balanced. A newly started business will not have any closing balances for the previous accounting year that has to be carried forward. Instead, the investments and capital of the business will be entered as opening balance for [...]
Accountants have struggled with this issue for many years, and even experimented with supplemental reporting requirements. In the absence of contrary evidence, accountants base measurement and reporting on the going-concern assumption. This means that accountants are not constantly assessing the liquidation value of a company in determining what to report, unless of course liquidation looks [...]
Integrated QTC software can improve your chances of successful sales and collections. In this lesson, we focus on the Quote to Order stage within the Lead to Cash business process. Just like moving into a new house, everyone needs to know where things are and how they work. Make sure everyone from sales to shipping [...]
In that case, the payor must immediately inform its bank to stop the payment of a check. Therefore, companies must perform regular bank reconciliations of outstanding checks to catch discrepancies early and maintain accurate financial records. Void checks require careful documentation and accounting adjustments to maintain accurate financial records. In some jurisdictions, uncashed checks may [...]
Levon Kokhlikyan is a Finance Manager and accountant with 18 years of experience in managerial accounting and consolidations. He has a proven track record of success in cost accounting, analyzing financial data, and implementing effective processes. He holds an ACCA accreditation and a bachelor’s degree in social science from Yerevan State University. You would need [...]
However, earning both certifications is likely redundant, and you can save professional bookkeeper time and money by choosing only one credential to pursue. AIPB also requires CBs to complete CPE to maintain their credentials. This process involves completing at least 60 CPE hours every three years, except for the initial certification cycle. After receiving their [...]
In manual accounting, posting is done by hand using a pen or pencil to enter journal entries into the general ledger. An accountant or bookkeeper will record each transaction in the general journal, then manually transfer the entries to the appropriate accounts in the general ledger. This process can be time-consuming and prone to human [...]
For example, if you add $1,000 of cash coming in (a debit), with $500 cash going out (a credit). It’s true that you can make a T account for any account but let’s take an account like cash. If you were to get cash coming in, you would add it to the debit side of [...]
Public companies operating in the United States are required by law to use a multi-step income statement since it provides the most accurate analysis of the business. Non-operating expenses are costs that are not related to a company’s core operations. “Other income/expense” is often included in this section and can include changes in the value [...]
Bubblez’n’More is a seltzer bottling firm that specializes in one-of-a-kind tastes. The filling department incurs $25,000 in direct material costs and $50,000 in conversion costs for the current month (consisting of direct labor and factory overhead). In April, the billing department’s per-unit cost is $.50 for direct materials (direct material prices divided by monthly unit [...]