Category: Bookkeeping

When an asset has a useful life of just a few months, it may be more efficient to simply record it as a prepaid expense (a short-term asset), and then charge it to expense at a steady pace over its life. Or, if the business only issues quarterly financial statements, it might make sense to … Continue reading CAPITALIZE English meaning

The calculation of net purchases above is simply the net cost of the physical goods supplied. To arrive at the cost of goods purchased the business needs to add the freight-in costs necessary how to depreciate leasehold improvements to have the goods delivered to its warehouse. Finally, the business settles the account of the supplier … Continue reading Net Purchases in Accounting

Prime costs and conversion costs are two methods that businesses use to measure the efficiency of their production operations. Prime costs also mark an item’s rock-bottom selling price; if you sell a product below its prime cost, you’re losing money on each unit. To generate a positive gross profit margin, products should sell for more … Continue reading What is the difference between prime costs and conversion costs?

In terms of financial statements, you can find your retained earnings account (sometimes called Member Capital) on your balance sheet in the equity section, alongside shareholders’ equity. In rare cases, companies include retained earnings on their income statements. This statement of retained earnings can appear as a separate statement or as inclusion on either a … Continue reading Retained Earnings: Calculation, Formula & Examples

The top five multistate operators nationwide paid a combined $2 billion in taxes between 2020 and 2023. But under the coming tax changes, they would probably only have to pay one-tenth of that, about $280 million, according to a study from FTI Consulting, a management consulting firm. But Youngblood said a disproportionate chunk of money … Continue reading CANNABIS 101: ACCOUNTING AND BOOKKEEPING NEEDS

Alam One Stop Tax and Accounting Services is an enrolled agent firm serving individuals and businesses in San Jose. Its services include data entry, invoicing and bill paying, bank and credit card reconciliation, internal accounting reports, and tax reports. The firm is headed by Mahbub Alam, a certified public accountant who is proficient in Quick … Continue reading Cross Border CPA San Jose CPA Silicon Valley CPA Firm

We expect purchase volumes to grow a further 15 percent in 2025 to 1.6 trillion, a further upgrade of $52 billion from our prior forecast. While we believe home sales are likely to stay subdued in the near term, listings of homes for sale have been trending upward in recent months and have outpaced sales. … Continue reading Startup Financial Projections: How to + Free Templates

Revenue is deferred when payment is received before the goods or services are delivered. The timing difference in deferral accounting is the recognition of revenue and expenses after cash has actually been exchanged. Accruals and deferrals are the basis of the accrual method of accounting, the preferred method by generally accepted accounting principles (GAAP). For … Continue reading The difference between accruals and deferrals