They need to collect and present data to the leadership to help them make important business decisions. Visibility into cash flows and reserves is a must for making strategic decisions. Accounting what is an automated…

T-accounts resemble the English letter “T”, hence the name. Debits are entered into the left hand side of a t-account whereas credits into the right hand side. Changes in assets, liabilities and equity items are…

Assume in the month of August, the company completes 150,000 reams of paper, spending raw materials total of $50,000, $70,000 in direct labor, and $30,000 for overhead. This means that in this process costing system…

The Opening Balance Equity (OBE) account in QuickBooks is a temporary placeholder that ensures the accounting equation remains balanced when initial account balances are entered during setup. While it is necessary during the initial stages,…

When a business earns a surplus income, it can either distribute the surplus as dividends to shareholders or reinvest the balance as retained earnings. There is no change in the shareholder’s when stock dividends are…

A material quantity variance points to a lack of efficiency during the manufacturing process. If it’s not because of defective materials, look into how your factory workers are trained. Factory workers who receive insufficient training…

Your operating budget, also known as a broad scope budget, gives you a financial picture of the activities your organization has planned for the coming year. Boards also use the operating budget to show projections…

FreeAgent also offers a dashboard for cash flow monitoring, making it easier for consultants to keep track of their financial health. Features include project management tools that help you track project progress and budgets alongside…

(The depreciation journal entry includes a debit to Depreciation Expense and a credit to Accumulated Depreciation, a contra asset account). The purpose is to allocate the cost to expense in order to comply with the…

There are strategies that can be leveraged to optimize the tax efficiency of an investor’s bond portfolios, such as investing in tax-exempt bonds. In this case, the bond holder essentially assumes the same role as…