Categorie: Bookkeeping

  • Double Declining Balance Depreciation Examples, Guide

    We can understand this by illustrating the case of a company that identifies huge profits on asset sales. Using this, the company experiences lower net income for many years, but as the book value of the asset is lower than market value, the company achieves a larger profit when the asset is sold. Double Declining […]

  • Controller vs CFO: The Differences and Similarities

    In addition to the qualifications listed below, see our post 5 Questions Every Owner Should Ask Their Controller and The Average CFO Salary (2018) + 28 Key CFO Interview Questions (coming soon). Generally speaking, $1MM in annual revenue is a minimum threshold to bring in a part-time CFO or contract CFO services, but some $500K businesses benefit as well. The common factor […]

  • Controller vs CFO

    The bottom 10% in the profession earned around $68,360, and the top 10% more than $208,000 annually. CFOs’ salaries may be affected by their experience and education level, as well as their geographic location and the industry in which they work. Manufacturing and professional, scientific, and technical services paid their chief executives a median annual […]

  • 3 Accounting Methods You Need To Know In 2023

    Accrual accounting is based on the matching principle, which is intended to match the timing of revenue and expense recognition. By matching revenues with expenses, the accrual method gives a more accurate picture of a company’s true financial condition. If you start your business using cash or modified cash-basis accounting and exceed the limits set […]

  • How to Choose the Right Accounting Method in 2023

    Public accounting focuses on helping a range of clients, including individuals, corporations, and small businesses, by providing services based on their needs. Public accountants may provide various services, from auditing to helping with tax returns. Now that we’ve covered the different types of accounting and the three accounting methods, let’s answer the big question. While […]

  • Trial Balance Explanation & Example

    Arthur Andersen was the auditing firm in charge of independently verifying the accuracy of Enron’s financial statements and disclosures. This meant they would review statements to make sure they aligned with GAAP principles, assumptions, and concepts, among other things. Since most companies have computerized accounting systems, they rarely manually create a TB or have to […]

  • What is LIFO?

    The International Financial Reporting Standards (IFRS), which is used in most countries, forbids the use of the LIFO method. Since LIFO uses the most recently acquired inventory to value COGS, the leftover inventory might be extremely old or obsolete. As a result, LIFO doesn’t provide an accurate or up-to-date value of inventory because the valuation […]

  • c++ What does LIFO really mean?

    The cost of the remaining items under FIFO is $5,436; under LIFO the cost is $4,800. Director of Marketing Communications at ShipBob, where she writes various articles, case studies, and other resources to help ecommerce brands grow their business. If you’re considering LIFO, be sure to utax + xero terms of use have a conversation […]

  • What Does LIFO Mean for Your Organization?

    This is why LIFO is controversial; opponents argue that during times of inflation, LIFO grants an unfair tax holiday for companies. In response, proponents claim that any tax savings experienced by the firm are reinvested and are of no real consequence to the economy. Furthermore, proponents argue that a firm’s tax bill when operating under […]

  • Is purchase ledger control account a debit or credit?

    The total amount owed to suppliers at any given time, as shown by the purchase ledger, should equal the balance on the accounts payable account shown in the general ledger. The individuals and other organizations that have direct transactions with the business are called personal accounts. PLCA indicates total trade payables at a given point […]