ADP RUN articles

For example, if a company sells produce, the delivery trucks it owns and uses are fixed assets. If a business creates a company parking lot, the parking lot is a fixed asset. However, personal vehicles used to get to work are not considered fixed assets. Additionally, buying rock salt to melt ice in the parking lot would be considered an expense and not an asset at all. When the tenant enters this type of lease agreement, they have it for a fixed amount of time. Because of this, neither the te […]

AP automation solutions include extensive verification protocols to ensure that all invoices are correct and proper. They make it virtually impossible to pay duplicate or even fake invoices. Finally, they are embarrassing and reflect poorly on your company to your vendors and suppliers.

This is because they require AP teams to issue two separate payments and spend time identifying and correcting the error. Your vendor’s AR team must also spend time getting the money back to your company […]

The drawing account is not an expense – rather, it represents a reduction of owners’ equity in the business. The drawing account is intended to track distributions to owners in a single year, after which it is closed out (with a credit) and the balance is transferred to the owners’ equity account (with a debit). The drawing account is then used again in the next year to track distributions in the following year. This means that the drawing account is a temporary account, […]

Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit. A second popular mnemonic is DEA-LER, where DEA represents Dividend, Expenses, Assets for Debit increases, and Liabilities, Equity, Revenue for Credit increases.

Debits do not always equate to increases and credits do not always equate to decreases. The […]

That’s why we chose Pilot as the best accounting firm for startup businesses. Payroll services also are available from 1-800Accountant for getting your employees paid, withholding taxes, and taking care of your payroll taxes. You also can add bookkeeping, priority support, and financial reports with the Enterprise plan for $375.

Virtual and outsourced bookkeeping and accounting services are a happy medium between do-it-yourself software and pricey in-house bookkeeping.
After assigning a […]

Join the 50,000 accounts receivable professionals already getting our insights, best practices, and stories every month. You can use your AR aging report to help you calculate AFDA by applying an expected default rate to each aging bucket listed in the report. It helps them acknowledge the risks inherent in collecting on account and present more realistic AR figures.

The allowance, sometimes called a bad debt reserve, represents management’s estimate of the amount of accounts receivable […]