A limited liability company is a business structure that, depending on various factors, may be treated as either a corporation, a partnership, or sole owner business. Owners of an LLC are called members, which can be corporations, individuals, and ev... Read more
The bank statement contains interest income of $30. The goal is to get your ending bank balance and ending G/L balance to match. In this guide, we’ll explain exactly why doing a bank reconciliation is so important, and give you step-by-step ins... Read more
James Woodruff has been a management consultant to more than 1,000 small businesses. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management iss... Read more
The strength of GAAP is the reliability of company data from one accounting period to another and the ability to compare the financial statements of different companies. Many experts consider the top line, or cash, the most important item on a compan... Read more
Content Where Do People Pay The Most In Property Taxes? How Do You Start A Business In California? How To Run A Business In California How Your Taxes Change When Youre An S Corp: Sales Tax You can learn more about the standards Read more
Check out our blog post, A Complete Guide to Reading Financial Statements. Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCo... Read more
Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed. The allowance for doubtful accounts nets against the total accounts receivable presented on the balance sheet to reflect o... Read more
Tax credits directly reduce the amount of tax you owe, dollar for dollar. A tax credit valued at $1,000, for instance, lowers your tax bill by $1,000. We believe everyone should be able to make financial decisions with confidence. See how life events... Read more
It may be obvious intuitively, but, by definition, a cash sale cannot become a bad debt, assuming that the cash payment did not entail counterfeit currency. The allowance for bad debt or the provision for doubtful accounts is a valuation account that... Read more
She buys and uses 10 of parts and supplies, and it takes 6 hours at 2 per hour to make the improvements to each machine. Jane has yummy overhead, including rent and electricity. She calculates that the overhead adds 0.5 per hour to her costs. Thus, J... Read more
