Category Archives: Bookkeeping

What is the allowance method?

However, if there is already a credit balance existing in the allowance of doubtful accounts, then we only need to adjust it. The main advantage of the allowance method is that it recognizes all expenses related to a revenue-generating event in a single reporting period. This allows the readers of a company’s financial statements to […]

Marginal Cost: Definition, Formula, and Examples

Variable costs refer to costs that change with varying levels of output. Therefore, variable costs will increase when more units are produced. At each level of production and during each time period, costs of production may increase or decrease, especially when the need arises to produce more or less volume of output. If manufacturing additional units requires […]

Law Firm Bookkeeping and Accounting: A Completed Guide 2022

At the heart of accounting for law firms lie the financial transactions, reporting, and trust accounts management which require particular attention. A comprehensive understanding of these aspects, along with the appropriate software tools, ensures efficient management of firm finances while adhering to tax compliance and planning requirements. Cash basis accounting records financial transactions when cash […]

Understanding and Applying GAAP for Nonprofits: FAQ Guide

It includes recording revenues and expenditures, tracking expenses, preparing financial statements and analysis reports, budgeting, and ensuring compliance with relevant laws and regulations. An income statement for nonprofits is a financial statement that shows the sources and uses of funds over a set period of time. It typically details all revenue, such as contributions, grants, […]

A Beginner’s Guide to Using Contra Asset Accounts

Contra accounts are used to reduce the original account directly, keeping financial accounting records clean. The difference between an asset’s balance and the contra account asset balance is the book value. They are also helpful for keeping the books balanced and creating a clear trail of financial breadcrumbs for historical review and reporting. For instance, […]

5 Steps To Find Outstanding Checks In A Bank Reconciliation With Excel

Check owner may want to cancel the check and prevent the holder from cashing out from the bank. Or they do not complete the service and the issuer cannot contact them to negotiate. Check is the document that orders the bank to pay a specific amount to the holder. For the past 52 years, Harold […]

How to start a bookkeeping business in 9 steps

For startup founders, understanding profitability metrics is important for gauging the health and potential success of your venture. This metric shows the percentage of revenue you’re retaining after covering the cost of goods sold (COGS). It’s a vital indicator of how efficiently you’re delivering your product or service. thoughts on “How To Start a Bookkeeping […]

Bookkeeping Taxes Fort Worth Texas

Certified Public Accountants is a tax and accounting firm that serves Fort Worth and the neighboring cities. It offers various services, including tax preparation and planning, IRS tax problem resolution, small business accounting, and new business advisory. Commercial clients looking to automate their accounting and fort worth bookkeeping payroll systems can also consult with the […]

Accounting, Bookkeeping & Tax Firm In Sacramento, CA

Get insights from one central dashboard so you can easily understand the health of your business and make strategic decisions. We have more than 25 years of combined experience in the professional world. With us, you can have the peace of mind knowing that your books are in good and capable hands. We help company’s financial […]