For instance, it might entail exchanging cash, goods, knowledge, or service requests. To keep track of what happened, some bookkeeping is typically needed. Due to its greater scalability, dependability, and affordability, computers are frequently used to perform this bookkeeping. Ask a Financial Professional Any Question Now let us look at some of the characteristics of […]

Learn the fundamental components of the balance sheet, income statement, and cash flow statement. We walk you through, line by line, each financial statement so that you’ll know exactly what everything means. These videos include everything you need to know as a beginner starting out in bookkeeping. For accountants and bookkeepers returning to the workplace, […]

When a sales discount is offered to few customers, or if few customers take the discount, then the amount of the discount actually taken is likely to be immaterial. In this case, the seller can simply record the sales discounts as they occur, with a credit to the accounts receivable account for the amount of […]

Cloud-based software operates entirely in the cloud (on the internet), whereas locally-installed software is downloaded and installed on a single, on-premise computer. The first major deciding factor is whether or not you want cloud-based or locally-installed software. If you read the overview of each QuickBooks product, you may already have an idea of which version […]

It may not provide a full snapshot of the financial health of a company without data from other financial statements. Examples of activity ratios are inventory turnover ratio, total assets turnover ratio, fixed assets turnover ratio, and accounts receivables turnover ratio. It is crucial to remember that some ratios will require information from more than […]

To Ensure One Vote Per Person, Please Include the Following Info Compared to conventional expenses, a business, over the course of several accounting periods will receive something of value from the prepaid rent. The initial journal entry for prepaid rent includes a debit to the prepaid rent asset account and a credit to cash or […]

Who uses dollar-value LIFO method? A layer in Dollar Value LIFO is a level of inventory that has been added to the base stock. For instance, if in year 1, you have 10 units of product A and in year 2, you add 5 more units, then those 5 units form a layer over the […]

A high average collection period ratio could indicate trouble with your cash flows. Accounts receivable turnover rates provide insight into a company’s collection efficiency. You can calculate it by dividing net credit sales by average accounts receivable over a period. We are at the forefront of bringing automation and AI to businesses’ exploring the relevance […]

Even though the CA designation has been rolled into CPA, you can still become a CA in Canada by following different pathways and taking the CPA Professional Education Program (PEP). This is for full-time accounting professionals and is a two-year part-time accounting program. A chartered accountant (CA) is a financial professional qualified to execute certain […]

If the foreign entity later becomes liable to file a U.S. tax return, the foreign entity should not apply for a new EIN, but should instead use the EIN it was first issued on all U.S. tax returns filed thereafter. You can file Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), with your […]