The below example breaks down different types of expenses, which makes it easier to track spending by category. The realm of advanced bookkeeping incorporates refined techniques that optimize financial tracking and assessment. Mastering these concepts ensures that companies wield robust tools for strategic decision-making and…
Bookkeeping
As the name implies, calculating Full Time Equivalent involves converting the working hours of part-time or temporary employees into the equivalent of a full-time position. This calculation is necessary for accurate HR budgeting, resource allocation, and workforce planning purposes. By fte meaning understanding the FTE…
Bookkeeping is a crucial function of accounting, and earning a bookkeeping certification is a great way to show employers your expertise. While a certificate is not a requirement to become a bookkeeper, some professionals pursue certification to show their skills to employers and stand out…
As a refresher, this “drop-shipment” relationship occurs when your vendor ships the product directly to your customer and bills your company for the purchase you made from them. In a traditional drop-shipment transaction, two separate sales occur simultaneously at the point the goods are delivered…
Compared to the other three methods, straight line depreciation is by far the simplest. This approach calculates depreciation as a percentage and then depreciates the asset at twice the percentage rate. According to the straight-line method of depreciation, your wood chipper will depreciate $2,400 every…
The business needs to identify the reasons for the discrepancy and reconcile the differences. This is done to confirm every item is accounted for and the ending balances match. Businesses maintain a cash book to record both bank transactions as well as cash transactions. The…
I was fortunate that I had classes that taught me these lessons as early as middle school, but not everybody is so fortunate. Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter,…
An increase in a liability or an equity account is a credit. When a company earns money, it records revenue, which increases owners’ equity. Therefore, you must credit a revenue account to increase it, or it has a credit normal balance. Last, put the amounts…
Further, this increment in a capital asset account and the reduction in cash account are to be recorded in the capital asset account and cash account separately. This transaction will likewise be recorded in the ledger account. Here are some examples of common journal entries…
Managing and running a business requires bookkeeping work, including accounts payable and accounts receivable, and tracking losses and profits. When your business grows to the point where you need a bookkeeper to complete these duties, then an outsourced bookkeeper can work for you and give…
