Category: Bookkeeping

Assets accounts track valuable resources your company owns, such as cash, accounts receivable, inventory, and property. You’ll notice that the function of debits and credits are the exact opposite of one another. If the bank uses call report codes to pool loans for the allowance for credits losses (ACL) account, then those same pools should be…

Some jurisdictions may offer alternatives for the remaining partners who wish to continue with the business[1]. Step 1 – Recognise goodwill assetThe goodwill account is created by a debit entry of $42,000. When a new partner is admitted to the partnership, the new partner effectively buys the assets of the old partnership from the old…

In essence, a separate account tracks each partner’s investment, distributions, and share of gains and losses. A and B are partners sharing profits and losses in the proportion of three -fifths and two-fifths respectively. After the accounts for the year 2006 have been prepared, it is found that interest on capitals at 5% p.a. As…

In accounting, bad debt is treated as an expense because it represents a loss of revenue. Companies must manage this risk effectively to maintain financial stability and ensure accurate financial reporting. Managing bad debt is a critical aspect of financial strategy, affecting both short-term cash flow and long-term profitability. If it estimates that 2% of…

Debt ratio, or debt to asset ratio, is a leverage ratio that measures a company’s or individual’s debt against its assets. It’s a useful ratio for investors to use because it helps them determine the default risk of a company. While the total debt to total assets ratio includes all debts, the long-term debt to assets ratio…

In this case, the company may pay dividends quarterly, semiannually, annually, or at other times (either fixed or not fixed). This is due to various factors such as earnings, cash flows, or policies. Dividend is usually declared by the board of directors before it is paid out. Hence, the company needs to account for dividends…

During this period, the country faced high levels of inflation, reaching double digits. In an attempt to combat inflation, the Federal Reserve implemented contractionary monetary policies, resulting in a significant increase in unemployment. This experience highlighted the challenges policymakers face when trying to strike a balance between inflation and unemployment. An analysis of the ratio…

Each provider on this list offers a free trial, product tour and/or platform demo. Test your top contenders firsthand to see which one you find easiest to use. If you’re trying to decide between a few of these providers, here are some questions you can reflect on to choose the right solution for your needs.…

Ramp offers a free corporate card and finance management system for small businesses. Restaurants with only one location can take advantage of Homebase’s free Basic plan which offers extensive time clock and scheduling tools. Gusto is designed with dynamic small businesses in mind, so it can fit payroll for restaurants the needs of a lean…

Online banking and online budgeting software can help you categorize spending so you can make adjustments. Many people find that just by looking at aggregate figures for discretionary expenses, they are spurred to reduce excessive spending. Sometimes budgeting just isn’t a priority because you have too much on your plate. But there are certain government…