Arquivos da categoria:Bookkeeping

The entertainment industry is diverse, and companies in this sector may have various revenue streams and expenses. Using sub-accounts in the chart of accounts can help categorize and organize the different sources of Revenue and expenses. For instance, under the revenue account, box office sales may have sub-accounts such as domestic box office, international box […]

Conversely, issues such as late deliveries, substandard materials, or unexpected price hikes can lead to variances. Building strong relationships with suppliers and regularly evaluating their performance can help businesses anticipate and address potential problems before they impact production. It’s important to note that direct material variance can be broken down into more specific components, such […]

Accrued revenues are revenues that have been recognized (that is, services have been performed or goods have been delivered), but their cash payment have not yet been recorded or received. Let’s say a company has five salaried employees, each earning$2,500 per month. In our example, assume that they do not get paidfor this work until […]

Daniel Teran, CPA, is an accounting firm with an extensive range of services for individuals and businesses in Santa Ana and the surrounding areas. The firm’s expertise includes basic tax management, accounting, auditing, and financial planning. Daniel Teran and his team also guide clients in tax preparation and planning, IRS representation, financial statements, and payroll. […]

The contribution margin measures how much money each additional sale contributes to a company’s profits. Business owners generally use the contribution margin ratio on a per-product basis to determine the portion of sales generated that can contribute to fixed costs. And as we mentioned earlier, a negative margin indicates the cost of producing the product […]

Accountants need to record the revenue base on the matching principle. As the cost of service is mostly the payroll, so they are already recorded into the income statement. So we have to record the revenue as well, but the invoice is not issued, so we record it into unbilled revenue. Internal Control Over Unbilled […]

Indian IT companies offer high-quality services by leveraging the latest technologies and the country’s top-notch tech infrastructure. This ensures efficient communication between your in-house and outsourcing partner. Also, your in-house team can easily collaborate with the outsourcing partner or a freelance Indian developer – preventing confusion and saving time. So instead of employing in-house developers, […]

They are initially recorded as a liability on the company’s balance sheet and then gradually transferred to revenue on the income statement over the contract period as the service is delivered. In the SaaS world, these financial statements take on nuanced complexities due to the recurring revenue model, deferred revenues, and the capitalization of certain […]

The easiest way basics of estimated taxes for individuals to stick with a savings goal is to automate your contributions. If you don’t want to take the time to make one yourself, there are many free budget templates you can find online. You can create your own printable budget template in a word processor like […]

Gross income is calculated by subtracting the cost of goods sold from a company’s revenue for a given period. Therefore, when COGS is lower (as it is under FIFO), a company will report a higher gross income statement. Higher inflation rates will increase the difference between the FIFO and LIFO methods since prices will change […]