As an experienced accountant, I understand the immense importance of the accounting equation in financial management. The accounting equation is the backbone of double-entry bookkeeping, providing a solid foundation for accurately tracking a company’s financial position. Have you ever wondered about the fundamental equation that underpins the world of accounting? In this article, I’ll be […]

In summary, revenue recognition is a complex process that requires careful consideration of a company’s contractual obligations and the timing of revenue recognition. Companies must adhere to the latest GAAP standards, such as ASC 606, to ensure accurate and consistent revenue recognition practices. Revenue recognition is a critical accounting principle that outlines how and when […]

Dividend amounts from Form 1099-DIV are transferred to Schedule B if total dividends exceed $1,500, then to Form 1040. If foreign dividends are involved, Form 1116 may be required to claim a foreign tax credit. Forms 1099-NEC and 1099-MISC are two of the most common types of 1099s, but there are many more, including those […]

By knowing how much each day is worth, you can accurately allocate the total amount to the specific number of days in your prorating period. Prorating is a concept that often pops up in the world of finance and accounting. Think of it as slicing a pie into even pieces, where each person gets their […]

That’s because of the challenges it presents, including storage costs, spoilage costs, and the threat of obsolescence. Consignment inventory is the inventory owned by the supplier/producer (generally a wholesaler) but held by a customer (generally a retailer). The customer then purchases the inventory once it has been sold to the end customer or once they consume […]

PayPal has been one of the most popular Cash Flow Management for Small Businesses payment methods for freelancers for at least a decade, and there are over 220 million active accounts around the globe. It’s free to create a PayPal account, and setting it up takes just a few minutes, but be ready with your bank account information […]

When choosing a QuickBooks plan, consider the security features each plan offers. QuickBooks Online Advanced includes continuous cloud backups and data restoration for better data protection. Users can manage access with custom roles, enhancing collaboration and security. Easily track product movement and storage down to the bin or pallet across staging areas, multiple warehouses, trucks, […]

Transitioning from paper to electronic invoices guarantees timely delivery, enhancing customer satisfaction. Simply put, AR automation aims to simplify the process of managing and tracking outstanding invoices that customers owe to a company. As a result, this reduces the workload for your company’s accountants and accelerates payment collection from customers by offering a variety of […]