Category: Bookkeeping

A strategic plan can be used to gain an understanding of leadership’s priorities, where they will focus time, energy, and resources, and how they will strengthen operations. It’s important to differentiate between the program and other expenses because many donors like to understand the difference between administrative and program costs. It shows donors and partners…

For instance, milk is a raw material used in the production of cheese and yogurt. Raw materials are often segregated into these three categories as each type often entails very different investments to procure the raw materials. Raw materials may degrade in storage or become unusable in a product for various reasons. If this occurs, the company…

Examples of current liabilities include accounts payable, short-term debt, accrued expenses, taxes payable, unearned revenue, and dividends payable. Accrued Liabilities (sometimes called accrued expenses) include items like accrued salaries and wages, taxes, interest, and so forth. These items relate to expenses that accumulate with the passage of time but will be paid in one lump-sum…

For example, gross profit, sometimes referred to as gross income, is the profit the company makes from the sales of its goods and services. The net profit is the profit that remains after all the expenses are subtracted from the revenue. Net income is the profit the company makes after having paid off all the…

Leaders in the architecture industry already have systems that let them access everything they need in real-time. Upgrading to a cloud-based system will allow your team to view, use, and send relevant information using their laptops or smart devices from the field. You’ll have accounts payable, accounts receivable, payroll, and so many more essential functions…

Similar to pension benefits, companies will accrue an expense for benefits earned by employees in that year and create a liability provision for those benefits that are to be provided in the future. In addition to pension accounting, companies also have to provide other benefits that are treated similarly to pensions from an accounting perspective.…

If the information is as of the beginning of the year, prior-year statements of net assets and changes therein are also required; otherwise, comparative statements are not required. Plans should consider providing a statement of cash flows when that statement would provide relevant information about the ability of the plan to pay benefits. For example,…

Protecting your business from risk is one of the simplest cost aversion strategies out there. Where you might pay a premium for insurance now, it usually does not compare to the cost you would have had were you not able to file a claim. Your accountant will know what practices are common for your industry,…