To illustrate, assume that a company sells ten thousand gift cards with a redemption value of $50 each. Revenue cannot be recognized when sold because the earning process is not substantially complete. Rather, a liability (such as “unearned rev... Read more
Other ledger formats list individual transaction details along with account balances. By this same analogy, a ledger could be considered a folder that contains all of the notebooks or accounts in the chart of accounts. For instance, the ledger folder... Read more
Match the beginning balance in the account to the ending reconciliation detail from the prior period. While keeping a GL accurate and up-to-date takes effort, the return is real-time insights for the business.... Read more
She has also been published in "The Branson Insider" newspaper. Griffin is a CPR/first-aid instructor trainer for the American Red Cross, owns a business and continues to write for publications. She received a Bachelor of Arts in English composition ... Read more
In the remaining states, broader tests for taxability are applied. What this means is that if you have employees in the states with the broader tests for taxability, you may end up paying state unemployment taxes even though you're not obligated to p... Read more
3, 2021Invoice #123($600)The money is being removed from accounts receivable—your client doesn’t owe you $600 anymore—so it’s listed as a credit . Going through every transaction and making journal entries is a hassle. But with Bench, all... Read more
The cash flow statement will help us understand the inflows and outflows of cash over the time period we’re looking at. Using the financial ratios derived from the balance sheet and comparing them historically versus industry averages or compet... Read more
Doing taxes when you're self-employed or doing gig work can be tricky. While it would absolutely, unquestionably suck to get audited, your odds of facing jail time over your taxes are pretty slim. If you make an honest mistake on your taxes, it's far... Read more
A healthy, established company should be generating profit from its operations -- its regular business. (Startups may take some time to get there.) But a company whose operations are losing money, with expenses exceeding revenue, could still report p... Read more
GAAP is important because it helps maintain trust in the financial markets. If not for GAAP, investors would be more reluctant to trust the information presented to them by companies because they would have less confidence in its integrity. Without t... Read more
