A bank reconciliation will also detect some types of fraud after the fact; this information can be used to design better controls over the receipt and payment of cash. The accountant adjusts the ending balance of the bank statement to reflect outstan... Read more
It usually means someone has forgotten to deposit the check in his account. If the check stays unprocessed for many months, call the recipient as a courtesy to remind her to deposit the check. Not producing a reconciliation report when one is needed ... Read more
I know I have seen jobs posted that pay $50K, and K is meant to stand in for thousand. K comes from the Greek word kilo which means a thousand. The Greeks would likewise show million as M, short for Mega. So if we stay consistent with the Greek abbre... Read more
Later, this entry will be removed as part of the EOD batch process. You can use them as typical checking accounts in every respect except to write a paper check. Finally, the account activity section details all memos that occurred during the stateme... Read more
The federal government withholds Social Security taxes up to the annual wage base, which was set at $142,800 in 2021 and $147,000 in 2022. FICA tax is typically 7.65% of earnings up to $127,200 . Employees pay 6.2% of their earnings for Social Securi... Read more
The TL;DR version is that bookkeepers give you a monthly snapshot of your business’s finances. Still not sure if you need to hire someone to help with your books?... Read more
After the initial recording, all documents should be preserved and organized into a file and put into a system so they can be retrieved at any time. It is also important to make a record of general internal control procedures specifying who in the fi... Read more
The acid-test ratio, also known as the quick ratio, measures the ability of a company to use its near cash or quick assets to immediately extinguish or retire its current liabilities. Quick assets include the current assets that can presumably be qui... Read more
CDs essentially require investors to set aside their savings and leave them untouched for a fixed period. It is a measure of how dependent a company is on borrowing rather than equity.... Read more
The same goes for calculating the gross margin , and operating margin (gross profit minus selling & general administrative expenses, divided by sales revenue). When you show the items of the income statement as a percentage of the sales figure, it is... Read more
