Most accounting software was designed with non-accountant business owners in mind, which means setup should be fairly straightforward. Still, some accounting programs are more user-friendly than others, and Wave Accounting is among the easiest for first-time business owners to configure. Wave Accounting imposes fewer limits than most of its competitors on everything from users to […]
Category Archives: Bookkeeping
Examples of revenue contra accounts are Sales Discounts, Returns and Allowances. Key examples of contra asset accounts include allowance for doubtful accounts and accumulated depreciation. Accumulated depreciation reflects the reduction in value of a fixed asset. Last, for contra revenue accounts there are sales discounts, sales allowances, or sales returns. Contra Account For its day-to-day […]
A strong owner’s equity can signal a healthy, growing business, making it an attractive investment opportunity. For example, Apple’s consistently rising owner’s equity has contributed to its reputation as a solid long-term investment. If a company wants to manufacture a car part, they will need to purchase machine X that costs $1000. Understanding the Core […]
The Globe and Mail suggests talking to your lender about your debt repayment plan should interest rates rise. It may also be time to look at your business plan and make sure it can accommodate rate increases. Otherwise, staying profitable and growing your business could prove challenging. The following https://www.simple-accounting.org/ example will explain interest payable […]
If none of the in-person options work for you, you can still submit your application by mail. We strongly suggest that you get certified copies of all your documents instead of forms and associated taxes for independent contractors sending originals. We also suggest you send the application and documents by certified mail so you’ll have […]
There are situations where intuition must be exercised to determine the proper driver or assumption to use. Instead, an analyst may have to rely on examining the past trend of COGS to determine assumptions for forecasting COGS into the future. Please download CFI’s free income statement template to produce a year-over-year income statement with your […]
It offers two levels of plans, though you’ll need to schedule a demo for pricing. Zyro is a good platform for sellers who want a money-back guarantee and 24/7 customer support. Sellers who are just getting started or whose primary business is in information and just happen to sell products on the side. On the […]
But to speed up the process, you could start by building a partial emergency fund. Generally speaking, you don’t need to be great at math to make and follow a budget. First of all, understanding general concepts relating to your income, spending, debt, saving, and allocating your funds are important. Then, the basic ability to […]
Note that the word ‘purchases’ relates to the specific cost of items that you buy with the intention of selling on to customers. Next up, we’re going to tackle the penultimate step in the accounting cycle – the trial balance. However, we know that Emily is one of Adam’s credit suppliers and they have an […]
Creating a chart of accounts not only shows a snapshot of your company’s financial health, it provides lenders and potential investors with all the information they need to know. This is crucial if you plan on applying for loans, investment, and funding when you expand. The income statement (or profit and loss statement) shows a […]