For example, if a company returns defective goods to a supplier, the value of the returned goods is credited to a purchase returns and allowances account, a type of contra expense account. This reduces the total cost of goods purchased, thereby adjusting the expense to reflect only the net cost. Examples of contra expenses include […]
Category Archives: Bookkeeping
You need to make up for that time by charging a sufficient rate for your billable hours. When you’re first starting out, hourly billing is usually the best way to go, but at some point in your career, you may want to transition to fixed-fee pricing for the Certified Public Accountant services you provide clients. […]
To calculate the ratio in Year 1, we’ll divide Year 1 sales ($300m) by the average between the Year 0 and Year 1 total asset balances ($145m and $156m). We now have all the required inputs, so we’ll take the net sales for the current period and divide it by the average asset balance of […]
The Construction Industry Scheme (CIS) essentially requires contractors to deduct taxes from subcontractors and then pass this money onto HMRC. These deductions are then counted as advanced payment towards the subcontractor’s overall tax and National Insurance. Most companies can quickly identify the difference between the cost of goods sold and overheads. Most items a regular […]
Even if you are able to easily calculate your commissions with a traditional spreadsheet, creating all the necessary reports for your team is very difficult to execute with Excel. For instance, if you and your colleague closed a deal at 10% commission with the split being done at a 50/50 share, remove 50% of the […]
Receipts and payments accounts are not part of the double entry system. Another name for an income and expenses summary, as adopted in non-trading concerns. “As per the agreed terms, we kindly ask that the payment be completed by [specific date]. A late fee of [amount/percentage] may apply for overdue payments.” What is an Income […]
The items therein should be compared to the new bank statement to check if these have since been cleared. Since these items are generally reported to the company before the bank statement date, they seldom appear on a reconciliation. Examples include deposited checks returned for non-sufficient funds (NSF) or notes collected on the depositor’s behalf. […]
We are a diverse team of top industry experts and turnaround, transformation and performance improvement professionals who know how to deliver successful outcomes in complex situations. Our complementary backgrounds and experience allow us to structure bespoke solutions for our clients, situation by situation. We live and breathe a set of core values that bookkeeping clean […]
When merchandise is returned, customers usually ask for a cash refund. However, a customer may find that low-quality (or slightly damaged) goods can be resold at a lower price or they can be used elsewhere. These accounts normally have credit balances that are increased with a credit entry. How to Record a Sales Revenue Journal […]
While data analytics isn’t necessarily glamorous, it’s critical to pushing your team and company forward. Many account executives begin their careers as account coordinators or sales reps before transitioning to an account executive role. Those who are newer to the role — or lack relevant experience accounting firm, accounting companies — often start as junior […]