How to Void a Check

You do not have to expose much about your essential details with these. If the recipient is not careful, your banking information may become accessible to thieves who will not think twice about robbing your hard-earned funds. The funds will be automatically taken from your account, depending on how you set things up. You only […]

All About Profit Centers

This business segment uses company resources like rent, sales staff salaries, and utilities to generate revenues by selling products to customers. Management typically analyzes the performance of both the department as a whole and its manager. Both are evaluated on the amount that center revenues exceed costs for a period. In other words, higher-level management tends […]

Contra accounts definition

Contra liabilities are common in companies that sell bonds to raise capital. To drum up interest in the bond, the company will sell it at a discount. For example, a bond with a principal amount of $1,000 may be sold for only $950. The bond is listed on the balance sheet at the full amount […]

Closing Entries: Step by Step Guide

To complete the Revenue account, you must debit the revenue account and credit an Income Summary Account account. The income Summary account is a temporary account where you would transfer the balance from the Revenue and Expense account. Clear the balance of the expense accounts by debiting income summary and crediting the corresponding expenses. Temporary […]

Accounting For Actual And Applied Overhead

If a company has overapplied overhead, the difference between applied and actual must be subtracted from the cost of goods sold. Understanding how to calculate manufacturing overhead applied is vital for businesses to efficiently manage production costs and make informed pricing decisions. By regularly monitoring and adjusting these calculations as needed, companies can stay in […]

Quicken vs QuickBooks 2024: Accounting Software Comparison

Let’s discover which accounting software brand is right for your business. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included […]

Nonprofit Accounting Basics: Chart of Accounts

A nonprofit will need to provide receipts so donors can write off these donations. Outsourced bookkeeping can help an organization handle these tasks, while offering advice on changing tax requirements and codes. Create a realistic operating nonprofit accounting basics budget at the start of each year, and if it needs corrections later on, don’t worry. […]

What Is Sales Tax? Definition, Examples, and How It’s Calculated

Alaska however does allow localities to charge local sales taxes as do many other states. A sales tax is a consumption tax paid to a government on the sale of certain goods and services. Usually, the vendor collects the sales tax from the consumer as the consumer makes a purchase. Do you pay sales tax […]

Accounting Ledger Definition, Purpose, and Example

Quality accounting systems have become a staple for small businesses everywhere, as they are essential to the management of accounts and organized record keeping. Every accounting period, these entries and account listings are compiled into the essential financial statements of a business, including the balance sheet and income statement. It is these documents that reflect […]