Category Archives: Bookkeeping

And don’t forget that if you’d rather not handle bank reconciliation by hand, accounting software—including free accounting software options—should minimize some of the hassle. This is a simple data entry error that occurs when two digits are accidentally reversed (transposed) when posting a transaction. For example, you wrote a check for $32, but you recorded […]

The purpose of billing is to accurately and efficiently charge customers for revenue definition and meaning products or services provided by a business. It helps to keep track of revenue and accounts receivable and is essential for financial management. Basic billing refers to a simple invoicing process where a business creates and sends invoices to […]

You might be asking yourself, “is the Income Summary accounteven necessary? ” Could we just close out revenues and expensesdirectly into retained earnings and not have this extra temporaryaccount? We could do this, but by having the Income Summaryaccount, you get a balance for net income a second time. This givesyou the balance to compare […]

This is useful for comparing the totals in your books to the totals on your bank statement. To complete the reconciliation, make sure the difference shown is zero. Some QBO users assume that reconciling a bank account is when they add or match transactions in the bank feeds window. You cannot reconcile a bank account […]

In this episode, Harlem chocolate Factory founder Jessica Spaulding recalls a few of her early money management mishaps, and three big lessons learned. See how you can track and manage your whole financial picture in one place—from bank transactions, expenses, and beyond. Everything is organized in its place the way it should be. I appreciate […]

If a company has a cash short situation, which is more common, the amount it is short will reduce the company’s net income and its cash balance in the general ledger. A cash over situation will increase a company’s net income and increase its cash balance in the general ledger. Petty Cash Account Type Petty […]

Logistically, that grocery store is more likely to try to sell slightly older bananas as opposed to the most recently delivered. Should the company sell the most recent perishable good it receives, lifo cogs formula the oldest inventory items will likely go bad. For example, the seafood company, mentioned earlier, would use their oldest inventory […]

This metric evaluates the efficiency of a company at utilizing its labor and supplies in producing its goods or services. If you subtract all the outgoings from the money the company received, you are left with $21,350. The process of amortization is usually done using the straight-line method, wherein the cost of the intangible asset […]

For Jerry’s Ice Cream,the standard quantity of materials per unit of production is 2pounds per unit. Thus the standard quantity (SQ) of 420,000 poundsis 2 pounds per unit × 210,000 units produced and sold. While we haven’t finished the calculation, it’s smart to pause here for some analysis. You multiply the difference by the standard […]