Category Archives: Bookkeeping

Product vs Period Cost: Key Differences and Financial Impact

Out of these 500 units manufactured, the company sells only 300 units during the year 2022 and 200 unsold units remain in ending inventory. The direct materials, direct labor and manufacturing overhead costs incurred to manufacture these 500 units would be initially recorded as inventory (i.e., an asset). The cost of 300 units would be […]

Free Personal Finance & Business Accounting Software for PC

As a startup founder, you might be juggling a million things at once—your product, marketing, growth strategies, etc. And the last thing you want is to spend hours manually tracking your finances. Unlike QuickBooks and Xero, Wave has fewer integration options with other business tools. This might limit its usefulness for businesses with complex needs. […]

Best Payroll Software for Accountants In 2025

The best payroll service for your small business is the one that makes your payroll operations as accurate and efficient as possible while staying within your budget. Gusto emerges as an online payroll software and HR administration platform tailored for startups and small businesses. Most of Gusto’s customers are companies ranging from 1-9 employees with […]

How to record prepaid insurance Example

This classification reflects the insurance’s short-term nature, as its benefits will be realized within the entity’s normal operating cycle. Prepaid insurance represents a future economic benefit that has been paid for but not yet consumed. A 24-month policy for $24,000 would have a portion allocated to long-term assets, with $12,000 classified as current and $12,000 […]

Receivable Financing Factoring Policy Innovation Hub

Additionally, businesses may offer discounts for early payment or implement late payment fees to encourage customers to pay their invoices on time. This can be a significant issue for small businesses, which may not have the financial resources to absorb the impact of unpaid invoices. To address this risk, many businesses use credit checks and […]

Debt to Equity Ratio: Overview, Uses, Formula, Calculation, Interpretation, Limitations

However, the value is sometimes destroyed despite the improvement in this ratio if the debt is used to overcharge for assets or fuel unwise projects. This ratio alone does not indicate the efficiency with which the organisation is employing its borrowed funds. And, consider the company’s financial situation and industry trends. When we analyze the […]

Introduction to Real Estate Bookkeeping: Why It Matters CPA Street Accounting and Tax Advisors

It also requires keeping detailed records of expenses and income related to the property to accurately track financial performance. Implementing efficient accounting software for real estate can greatly benefit business owners  agents bookkeeping for realtors alike. By utilizing real estate-specific features in bookkeeping software such as QuickBooks, you can easily track expenses, manage cash flow, […]

Unadjusted trial balance: Definition, preparation and example

You can do this by either totaling the last period’s closing balances or you can enter balances as of the 1st day of this period. Accountants also use this early trial balance to find problems like missing information or numbers that don’t match up. They know that getting this part right is super important for […]