Whether you are the one withholding retainage or it is withheld from your payments, accounting for retainage requires an addition to the chart of accounts. Retainage doesn’t belong in accounts receivable or payable, because it is not collectible (or payable) until the contract conditions have been met for its release. Even with this advantage, the […]
Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. Many investors look for consistent and growing dividends over time as an indication of company health and likelihood of paying future dividends. Some investors specifically seek out and invest in dividend-paying what […]
Debt and credit can be significant financial burdens for small businesses. By managing debt and credit carefully, businesses can lower interest rates, decrease monthly payments, and even improve their credit score over time. This can help to make the business more attractive to lenders, which can be especially helpful in securing financing for future growth. […]
Reconciling these two balances is an important process, usually referred to as “bank reconciliation,” to ensure the accuracy of the company’s financial records. The term book balance refers to the amount shown in the organization’s records. For example, the book balance listed in your current accounting solution as of June 30 refers to the balance in the […]
The auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, and whether the misstatements are from error or fraud. A compilation means to transform a program written in a high-level programming language from source code into object code. Source code must go through several steps before it […]
Depreciation Expense is a temporary account and as such is reported on the income statement. As a temporary account, at the end of each year, its balance is closed and the Depreciation Expense account begins the next year with a zero balance. Now, that we have an understanding of depreciation expense, is it recorded as […]
No matter the size of your company, you want the best set of hands to handle your financial records. In addition to tax preparation, they perform other duties like month-end financial reporting, tax advisory, and monthly bookkeeping services. They can either work directly for your clients on a referral basis or through a white-label accounting […]
You can renew your ITIN by filling out the ITIN order form and selecting the “Renew ITIN” option at the end of the form. This does not matter if the income was paid to you by cash, check, or direct deposit. To obtain an SSN, see Form SS-5, Application for a Social Security Card. To […]
There are lower risks of accounting errors with cloud-based accounting systems because all the relevant financial information is entered in the same place. If you’re entering expenses and income regularly and categorizing transactions, you can pull up an accurate report at any time. With most cloud-based accounting programs, you can automate your workflow to save […]
This is often illustrated by showing the amount on the left side of a T-account. There are several meanings for the term debit balance that relate to accounting, bank accounts, lending, and investing. For example, if a company has $100 in Accounts Receivable and $50 in Accounts Receivable Offset (a contra asset account), then the […]
