Category: Bookkeeping

A high Contribution Margin Ratio indicates that each sale produces more profit than it did before and that the business will have an easier time making up fixed costs. A low Contribution Margin Ratio, on the other hand, suggests that there may be difficulty in covering fixed costs and making profits due to lower margins… Continue reading Contribution Margin Overview, Guide, Fixed Costs, Variable Costs

It’s necessary to inform your team first and foremost, but your internal communications practices should ultimately lead to action. As Viktoria Tegard of Virgin Atlantic alludes to in the quote above, internal communications should involve, motivate and inspire your team to go above and beyond. Gone is the notion that it’s called “work” for a… Continue reading Internal Communication Strategy & Plan Examples Best practices

Our top pick for accounting software is Zoho Books, though QuickBooks did nab the number four spot in our ranking. See the full list of the best accounting software in our 2024 ranking guide. Unlike QuickBooks Premier, which lets you have five users, QuickBooks Pro has a maximum of three. It also only comes with… Continue reading How Much Does QuickBooks Online Really Cost

When the company receives money from these sources, it isn’t considered revenue but a liability, because it is a debt that needs to be paid back. The money, however, directly increases the company’s cash reserves, thus is recorded as a cash inflow from financing activities in the cash flow statement. It’s worth mentioning that cash… Continue reading 16 2 Differentiate between Operating, Investing, and Financing Activities Principles of Accounting, Volume 1: Financial Accounting

The accounting cycle refers to the cycle in which the steps of the accounting process revolve. As an accounting student or professional, you must be well aware of the complete accounting cycle. It is a complete process where an accountant or the bookkeeper performs accounting tasks. To gain a better understanding of this, consider an… Continue reading What Is The Accounting Cycle? Definition, Steps & Example Guide

If there is an obligation to restore the land to a usable condition, the firm adds these estimated restoration costs to the costs to develop the site. Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals, and oil from the earth. In some instances, companies buy only… Continue reading Journalizing Adjusting Entries for Depletion

Payroll expenses are usually reported by organizations in their income statement for the period. While the amount in each liability account tells you either the amount you are supposed to deduct from your employee’s salary. It is important to note that expenses and liabilities in the payroll journal entry offset one another. That is, an… Continue reading What are Payroll Liabilities & How to Track Them

Follow the online lookup tool prompts to find the right product for you. Unfortunately, inflation increases expenses, which cuts into household earnings. That means you might not feel those adjusted gross income boosts. For example, as of 2023, if you were a single filer and covered by a retirement plan at work, you couldn’t take… Continue reading Things to remember when filing 2023 tax returns Internal Revenue Service

For certification requirements, go to Accounting Certification requirements. For certification requirements, go to QuickBooks Online Certification requirements. For certification requirements, go to Payroll Certification requirements. For certification requirements, go to Bookkeeping Certification requirements. Xero Advisor certification shows you how to use all of the core features of the software, from setup to bank reconciliation and… Continue reading Bookkeeping Certification

If you were charged with managing a client’s checking account it would be wrong to report deposits into that account as your own income, because it’s not. When handled properly, this clean separation of funds ensures that you maintain ethical behaviors and reduces trust accounting for lawyers the possibility of legal troubles. But – by… Continue reading 8 Common Trust Accounting Mistakes Made by Lawyers and How to Avoid Them