Categoría: Bookkeeping

Many states allow landlords to withhold security deposits for unpaid utility bills. Some states only allow security deposits to cover some types of utilities. Assume that a new business is required to pay $500 as a security deposit to an electric utility before the utility provides electricity. In most fixed rate energy plans, customers use electric service for a set period of time before having to pay their electric bill. Customers who have a poor history of paying their bills…

For example, when you purchase a house using a loan, you can use the house while paying off the contract. Similarly to this, your utility company offers to provide you with a specific service, and you pay after you’ve used the service. If you switch providers, you’ll still be able to get your deposit back. The amount is used to offset the final bill with your old provider, and any remaining amount will be returned to you. For example, areas…

That is, the higher the correlation in either direction (positive or negative), the more linear the association between two variables and the more obvious the trend in a scatter plot. For Figures 3 and ​and4,4, the strength of linear relationship is the same for the variables in question but the direction is different. In Figure 3, the values of y increase as the values of x increase while in figure 4 the values of y decrease as the values of…

Content Misrepresentation of Costs Difference between normal loss and abnormal loss Process vs. Job Costing Choosing Between Process Costing and Job Order Costing Do you own a business? Process costing Process costing is an essential tool for businesses that operate in the manufacturing industry. It provides a comprehensive way to determine the cost of producing goods by calculating the expenses incurred in every step of the production process. Having accurate per-unit-costing helps with pricing products appropriately, which can lead to…

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are Accounting For Small Start-up Business interested in starting a Limited Liability Company. If your business doesn’t have much reporting or bookkeeping, you might be required to use a calendar tax year. Consider completing the IRS voluntary Annual Filing Season Program. The program requires a tax preparer to complete 18 hours of tax…

Content How to Value Intangible Assets Examples of intangible asset What are intangible assets? Amortization Expense Intangible assets acquired through a nonexchange transaction and intangible assets created by statute or the inherent nature of a government should be reported at their estimated fair value at the time of their acquisition or creation. The Board discussed treatment of costs related to an intangible asset incurred subsequent to its initial recognition or completion. The Board tentatively concluded that generally such costs should…

Content Markets Data Can I Do My Own Accounting? What are typical accounting roles? Check the Accountant’s References Read online reviews Every company sale is different, and a good accountant will help you get the best result when you sell up. Your accountant can also help you choose which loan to go for, and tell you whether your bank’s terms and conditions and interest rate are favorable to you. Since the credit crunch, lending to small businesses has dropped in…

Content Protect Social Security Benefits Join over 140,000 fellow entrepreneurs who receive expert advice for their small business finances Where to submit back taxes Deadlines for Letters You May Receive What If I Owe the IRS and Can’t Pay? If You Owe IRS Taxes What Questions Should You Ask a Tax Professional? If you are unable to pay the full amount you owe, you may be able to make a payment plan with the IRS. When you make a payment…

Content How do you use days sales outstanding (DSO)? Days Sales Outstanding vs. Average Collection Period What is days sales outstanding? How to calculate and improve DSO Applications of DSO Days Sales Outstanding FAQs Use an invoice template that includes your payment terms, due dates, and options. Implement new software to streamline the billing process and ensure timely delivery of invoices. Automated reminders help in following up with customers who have outstanding balances, reducing the chances of late payments. DSO is…

Content How Do You Track Expenses? Lite plan lacks double-entry accounting basics Setup FreshBooks Review 2023: Features, Pros And Cons Company How Do You Create Client Records? When QuickBooks is best If you have any open quotes/received invoices in your FreshBooks account, you will have to create them manually in your Zoho Books account. You will have to recreate the recurring invoices in Zoho Books and deactivate them in FreshBooks. Software that operates in the same category and industry is…