Business Accounting Blog

It is useful to work with the contra revenue account in the following situations:…

The company offers three services:…

An account post is usually done through a strict procedure that follows the creation of a journal entry from details of a particular transaction. Note that this is considered as the third step in the accounting cycle….

In royalties, the owner is not selling full legal ownership of the asset, but simply the right to manufacture it. If the rights to ownership of a property are sold, that would be called capital expenditure. This is how the two differ. There are actua…

Accrual and deferral pertain to both expenses and revenue that are recorded based on the actual time period they were settled. Accruals are those payables or receivables that are also earned or incurred but not yet received or unpaid to set the demar…

There is a period of the trial while you can use QuickBooks online for free. It is a good chance to work with the program in a test mode. During this time, you can decide if this application corresponds to your needs and wishes. When this period ends…

Retained ratio definition is easy to remember. The profit retention rate is the rate of reinvestment of profit in fixed assets. …

From the point of view of use in the practical activities of business entities – the balance sheet is understood as a reporting form that contains information about the financial position of the business entity….

This information will be useful to both the company’s management and potential creditors and investors. The balance sheet shows the status of assets, liabilities to third parties, and equity at a certain date. As a rule, the balance is formed on an a…

Accountants often ask, “How to calculate cash flow?”. The choice of calculation method depends on how deeply you want to analyze the company’s cash flows and based on what data the indicator is calculated (historical or forecast)….