Category: Bookkeeping

Therefore, the final tax expense for each year reported in the Statement of Profit or Loss would be as in Table 3. It can therefore be said that accounting for deferred tax is ensuring that the matching principle is applied. The tax expense reported in each period is the tax consequences (ie tax charges less… Continue reading FASB simplifies presentation of deferred income taxes

It’s true that many large companies outsource portions of their operations, although accounting is typically one of the areas that tends to be handled by internal teams. But the fact that public companies are embracing outsourcing shouldn’t dissuade you from exploring outsourcing elements of your own business. Among all these day-to-day activities, it can be… Continue reading Finance and accounting outsourcing Services

Creating the credit memo creates a debit to a bad debt expense account and a credit to the accounts receivable account. This is a distortion that reflects on the revenue financial reports for the accounting period of the original invoice as well as the period of the write off. To keep the revenue of both… Continue reading Write-Offs: Understanding Different Types To Save on Taxes

When a sale takes place I am taking from Inventory and posting to the appropriate P & L account. Looks like the business could have a sizable amount of money spent on inventory that cannot be recognized for tax purposes until a sale takes place which could be in a different year. You work hard… Continue reading Financial Clarity: Demystifying Auto Dealer Accounting for Increased Efficiency

You can connect different apps and services to improve automate workflows. To do this, it uses APIs (Application Programming Interface) through a shared language. You can integrate apps like Salesforce, Intuit, Dropbox, and Google to communicate data between them. It’s used by accounting firms of all sizes to save time and focus on the highest… Continue reading Accounting Workflow Automation: Schedule a Demo

Content What is Accumulated Amortization? What is amortization in accounting, and how is it calculated? Is It Better to Amortize or Depreciate an Asset? Step 2: Calculate the period interest rate. Amortization vs. Depreciation: An Overview Both are noncash expenditures, and both depreciation and amortization appear as a reduction in the assets on a balance… Continue reading What is an Amortization Expense? Definition Meaning Example