Category: Bookkeeping

A perpetual inventory system gives an ecommerce business an accurate view of stock levels at any time without the manual process required for a periodic inventory system. The automation that a perpetual inventory system provides frees up time and capital. With the use of inventory management software, a perpetual inventory system tracks inventory levels and orders […]

In this case, perhaps only 1% of initial sales would be added to the allowance for bad debt. Lenders use an allowance for bad debt because the face value of a firm’s total accounts receivable is not the actual balance that is ultimately collected. When a customer never pays the principal or interest amount due […]

For example, consider a soap manufacturer that previously paid $0.50 per bar for packaging. Should the company enter into an agreement to pay $500 for all packaging for all bars manufactured this month. Gross margin would report both types of costs the same (include it in its calculation), while contribution margin would consider these costs […]

For example, consider a soap manufacturer that previously paid $0.50 per bar for packaging. Should the company enter into an agreement to pay $500 for all packaging for all bars manufactured this month. Gross margin would report both types of costs the same (include it in its calculation), while contribution margin would consider these costs […]

Age requirements for reclassification in high school can vary from district to district. Generally, students should be at least 16 years old before they can start the process. While a student of any age can reclass, in order to maintain eligibility for all four years of high school sports participation, in most cases, the student […]

As noted above, the numbers you’ll need are located on a company’s balance sheet. Total liabilities are all of the debts the company owes to any outside entity. On the other hand, a comparatively low D/E ratio may indicate that the company is not taking full advantage of the growth that can be accessed via […]

A note payable is classified in the balance sheet as a short-term liability if it is due within the next 12 months, or as a long-term liability if it is due at a later date. When a long-term note payable has a short-term component, the amount due within the next 12 months is separately stated […]

Consequently, the provision will increase each year until it becomes $20m at the end of the asset’s 25-year useful life. On 31 December 20X8, Rey Co should record the provision at $10m/1.10, which is $9.09m. This should be debited to the statement of profit or loss, with a liability of $9.09m recorded. EXAMPLE – best […]

A bank reconciliation statement compares a company’s records of its financial transactions with those of its bank statement. For example, if a company’s records show it has $5,000 in its account, but bank statement shows $4,800, the reconciliation statement helps identify and resolve discrepancies. Remember that transactions that aren’t accounted for in your bank statement […]

When building a financial model in Excel, it’s important to know how the cash flow from financing activities links to the balance sheet and makes the model work properly. As you can see in the screenshot below, the financing section is impacted by several line items in the model. Since this example is from a […]

A bank reconciliation statement compares a company’s records of its financial transactions with those of its bank statement. For example, if a company’s records show it has $5,000 in its account, but bank statement shows $4,800, the reconciliation statement helps identify and resolve discrepancies. Remember that transactions that aren’t accounted for in your bank statement […]

At Professional Bookkeeping and Tax Service LLC, we use an experience based system to help you change your business to a profit first mind set. Nationally, the average hourly rate nationally for a tax prep professional ranges between $150 and $450. We’ll work with you to connect accounts and pull the data we need to […]