Bookkeeping

Net Working Capital Formula, Calculator and Example

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Negative working capital is an indicator of poor short-term health, low liquidity, and potential problems paying its debt obligations as they become due. Well, if the company can’t pay off its debts with current...

Sunk Cost Why You Should Ignore Them the Sunk Cost Fallacy

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On a larger scale, the sunk cost fallacy can drive a company to stick with an underwhelming product or prevent them from keeping up with modern consumer demands or workplace trends. For example, a...

Debit Memorandum Definition in Three Scenarios

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ContentExample of a Credit MemoSettling a credit invoiceExample of Credit MemoReduce Inventory RiskWhy is a credit memo important?The Struggles of Private Company AccountingInsurance documents and contracts are made between the insurance company and the...

Theres Still Time to Get a Tax Break for Donations to Charity The New...

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ContentClaiming charitable donations as an itemized deductionCharitable Contribution Deduction: Rules and Changes for 2022 and 2023Make Smart Choices With Your MoneyHow does the Pease limitation affect my tax deduction?Tax Planning for Beginners: 6 Tax...

Is Accepting Rent in Advance a Good Idea? Rental Property Management Software by Apartments...

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As seen in the journal entry above, prepaid rent is debited because it is an asset. According to the accounting debit and credit rules, all assets and expense accounts are debit entries. Hence, they...

Billing 101 for Mental Health Professionals

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ContentFamiliarity with Mental Health EHRSHow to Handle Mental Health Billing Denials, Rejections, and AppealsOut-of-network benefitsWhat are the types of mental health services?LICENSE FOR NATIONAL UNIFORM BILLING COMMITTEE (NUBC)Noncovered ServicesThis way, if you have to...

Manufacturing and Non-manufacturing Costs: Online Accounting Tutorial & Questions

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ContentFinancial accounting treatmentManufacturing and Nonmanufacturing CostsWhat are Period Costs or Non-Manufacturing Costs?Nonmanufacturing overhead costs definitionCost Acc. chap 3 - Conversion costs are all manufacturing costs other than direct materials costs.This is reasonable so long...

Closing Entries Using Income Summary

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ContentTemporary accounts and Permanent accounts:What Is An Income Summary:What is Income Summary?What Is Wrong if a Company Doesn't Complete the Closing Entries?Beginning Balances and Closing Entries on an Income SummaryIf the income summary has...

What is Owners Equity? Definition Meaning Example

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“Shareholder equity” is more specific and refers specifically to the ownership interest of shareholders in a corporation. In the second year of operations, ABC Enterprises decided to buy back 5,000 of its outstanding shares...

What is the difference between a PO and non-PO invoice?

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ContentStructured vs. Unstructured Data: Securing Procurement and Reducing Cybersecurity RiskIssuing Purchase Orders and InvoicesDesign Invoices inWhat is an invoice? what does it contain?The Non-PO Invoice Procurement ProcessA better way to manage your financesWhat should...