Category: Bookkeeping

It’s vital to differentiate between these sources of earnings when assessing a company’s financial strategy and sustainability. The retained earnings of a company are the total profits generated since inception, net of any dividend issuances to shareholders. Some benefits of reinvesting in retained earnings include increased growth potential and improved profitability. Reinvesting profits back into…

The standard deduction for a Head of Household Filer in Oregon for 2022 is $ 2,420.00. Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners. View how much tax you may pay in other states based on the filing status and state…

Taxes are only paid at certain times during the year, not necessarily every month. Taxes the company owes during a period that are unpaid require adjustment at the end of a period. Similar to prepaid insurance, rent also requires advanced payment. First Four Steps in the Accounting Cycle Recall that unearned revenue represents the company…

Break-Even Point calculation assumes that all other factors remain constant, which is often not the case in real-life business scenarios. Break-Even Point Calculator is not only informative but also fun to use. Let’s take a look at some examples of Break-Even Point calculations for different individuals in a table format. Are you tired of not…

Negative goodwill is usually seen in distressed sales and is recorded as income on the acquirer’s income statement. If a company assesses that acquired net assets fall below the book value or if the amount of goodwill was overstated, then the company must impair or do a write-down on the value of the asset on…

Examples may include a recession, or if there’s disruption somewhere in your supply chain. If you’re developing a hypothetical, or pro forma, income statement, you can use historical data from previous years’ income statements. You can also do a comparative analysis of two different income statement periods to come up with your figures. What Is…

The balance sheet is an essential financial statement that provides a concise overview of a company’s financial position. It presents the assets, liabilities, and equity, offering valuable insights into the company’s resources, obligations, and ownership structure. The balance sheet, a cornerstone of financial statements, serves as a snapshot of a company’s financial well-being at a…

A Southern California native, Cynthia received her Bachelor of Science degree in finance and business economics from USC. On the Date of Payment, you would make an entry to debit Stock Dividends Distributable and credit the Common Stock account. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may…

You record income when you earn it and expenses when they are used to produce that income. Accrual basis accounting is typically best because it offers the most accurate information about your business’s performance. But its complexity may outweigh its benefits for simple, very small businesses. Ultimately, the right accounting method for you will depend…

The bookkeeping transactions can be recorded by hand in a journal or using a spreadsheet program like Microsoft Excel. Most businesses now use specialized bookkeeping computer programs to keep books that show their financial transactions. Bookkeepers can use either single-entry or double-entry bookkeeping to record financial transactions. Bookkeepers have to understand the firm’s bookkeeping tutorial…