Accounting

In this case, there are no accrued taxes so the income tax expense is the same as cash paid for income taxes. If you have to do an additional reconciliation, why is it called the direct method.

Business events are recorded with income statement and balance sheet accounts like sales, materials, and inventory. It’s laborious for most companies to compile the information with this method. The cash flow statement presented using the direct method is easy to read because it lists all of the m […]

Consider a situation wherein the total variable costs of production are $1,000 per month, and the total revenues generated per month are $10,000. A variable expense can change from month to month or week to week. For example, raw materials a manufacturing company uses to produce a final product would be considered a variable expense. Because production levels will cause the amount of materials needed to vary, this is considered a variable expense. Other examples of variable expenses include pac […]

To identify incentives that are conducive to fraud, researchers look at the relationship between structural incentives, such as executive compensation structures, and incentives to engage in fraud. The key takeaway is management, with advice from corporate counsel and accountants, has the power to identify and mitigate fraud risks. While there is no action that can completely eliminate fraud, implementing policies that address the three arms of the Fraud Triangle will not only help to reduce th […]

You can read more about our ratings for various business accounting software here. You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use. Bookkeeping software was designed to make it simple for small business owners […]

Otherwise, a free accounting software that doesn’t meet your needs simply isn’t worth the time. If you’re looking for a free desktop accounting software for your small business, then GnuCash is a solid contender.

What is better than Xero?

In Summary: The Best Xero Competitors
QuickBooks Online: Best overall Xero alternative. QuickBooks Desktop Pro: Best locally-installed Xero alternative. FINSYNC: Best for cash flow management. Sage Business Cloud Accounting: Best for us […]

After learning both FIFO and LIFO cost flow assumptions, one can clearly understand that they are two opposing concepts when it comes to valuation of units sold and units held by the period end. FIFO is subtracted from LIFO because, in a rising economy, we assume that LIFO is always higher than FIFO. It goes vice versa as well, which means you can subtract LIFO from FIFO. This is also used to track the difference between the company using the LIFO method and those using the FIFO method.

Does […]