Accounting Cycle 8 Steps in the Accounting Cycle, Diagram, Guide
Many companies use accounting software to automate the accounting cycle. This allows accountants to program cycle dates and receive automated reports. Analyzing the worksheet reveals unrecorded credit for Accounts Receivable and unrecorded debit for Accounts Payable. The budget cycle is an estimation of revenue and expenses over a specified period of time in the future […]
Single-Step vs Multi-Step Income Statement: Key Differences for Small Business Accounting
Smaller businesses may use the more simplified single-step income statement, unless otherwise required by their creditors or lenders. Typically, larger companies will use the multi-step income statement as it provides more valuable details to its many investors and lenders. Big corporations tend to prepare the multi-step income statement due to the size and complexity of […]
How to Calculate Current Assets Formula, Example, & More
The Quick Ratio, also known as the acid-test ratio, is a liquidity ratio used to measure a company’s ability to meet short-term financial liabilities. The quick ratio uses assets that can be reasonably converted to cash within 90 days. Accounts receivable are the money customers owe the seller or business. Since most customer payments are […]
11 Best Freelance Management Accountants Hire in 48 Hours
Ideally, I’m looking for someone who has experience with QuickBooks, Xero or Excel and is committed to delivering accurate results in a timely manner. Please reach out to me if you feel you have the necessary skills to complete this project. By becoming a certified public accountant (CPA) after passing a CPA exam, freelance accountants […]
The Beginner’s Guide to Bookkeeping
The year-end reports prepared by the accountant have to adhere to the standards established by the Financial Accounting Standards Board (FASB). The financial transactions are all recorded, but they have to be summarized at the end of specific time periods. Other smaller firms may require reports only at the end of the year in preparation […]
Bad Debt Expense: Definition and How to Calculate It
The allowance method estimates bad debt expense at the end of the fiscal year, setting up a reserve account called allowance for doubtful accounts. Similar to its name, the allowance for doubtful accounts reports a prediction of receivables that are “doubtful” to be paid. Alternatively, a bad debt expense can be estimated by taking a […]
Is Short Term Investment a Current Asset?
We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. ROI isn’t everything; consider an investment that earns a stead 10% ROI each year compared to a second investment that has an equal chance of earning 25% or losing 25%. A less traditional form of investing, collecting or purchasing […]
