In accrual accounting, revenue is recorded in July, even though you don’t receive the payment until September. The primary difference between cash and accrual accounting lies in the timing of recording expenses and revenues. The difference between accrual versus cash accounting comes down to timing of work earned, expenses incurred, and payments. At times, it…
QuickBooks Payments makes it easier for you to accept online payments when you send invoices from within the app. With QuickBooks, it is very simple to track time as well as billable expenses incurred by employees or subcontractors. They can either enter it themselves using the QuickBooks mobile app or submit it manually and a…
The Delaware franchise tax for a corporation is slightly more complicated. It is based on the corporation type and authorized shares. The total cost also includes an annual report fee. The Delaware franchise tax is beneficial to corporations because it is a simple process to submit and calculate payment. The Delaware franchise tax is also beneficial…
For instance, investors holding stock in a company are typically interested in their personal equity in the company, expressed by their shares. Yet this form of personal equity is directly related to the overall equity of the company, so a stockholder would also be concerned with the earnings of the company. Owning the equity of…
Most prepaid expenses appear on the balance sheet as a current asset unless the expense is not to be incurred until after 12 months, which is rare. Prepaid expenses aren’t included in the income statement per generally accepted accounting principles (GAAP). In particular, the GAAP matching principle requires accrual accounting, which stipulates that revenue and…
Sue uses $500,000 of her cash and borrows $1,000,000 to purchase 120 acres of land having a total cost of $1,500,000. Sue is using financial leverage to own/control $1,500,000 of property with only $500,000 of her own money. Let’s also assume that the interest on Sue’s loan is $50,000 per year and it is paid…
However, with so many choices available, determining the right solution for your needs can feel overwhelming. QuickBooks and Xero both offer great mobile apps for you to run your business from a smartphone. The main apps also garner similar ratings on the Apple and Google app stores. Both Xero and QuickBooks Online do a great…
For this reason, many businesses hire bookkeepers or accountants to maintain or review their books. Cloud-based online accounting software makes it convenient for businesses to share their accounting data with their bookkeepers or accountants. To process payment from a customer, Wave charges 2.9% plus 60¢ per transaction for Visa, Mastercard, and Discover and 3.4% plus…
Sales forecasting impacts many of the decisions your company must make in a number of ways, including providing the data to support those decisions. One commonality across these points is that they illustrate the need for cultural change in the sales organization. In other words, you can only drive accuracy in forecasting if salespeople sales…
This seemingly small error can significantly impact the accuracy of financial statements and ledgers, leading to inconsistencies in accounting records. These errors can distort a company’s financial health representation, leading to inappropriate decision-making by stakeholders, erroneous tax filings, and financial audits. For example, in accounting, when a bookkeeper manually enters data into a ledger, they…