Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Talk to bookkeeping…
Second tier support consultant’s knowledge base is usually broader and more advanced than that of the L1. Their responsibilities might include testing, researching and digging deeper. The best way to get customers talking about your business is to make sure that you are meeting their needs in a way that they can see and feel…
The FIFO method is applied to internal reports, and often fuels greater profitability. This is more attractive to internal users of the financial statements, such as shareholders, and typically provides a more real or true profit potential of the business. The LIFO reserve is an account used to reconcile the difference between the FIFO and…
Cash flow from financing activities provides investors insight into a company’s financial strength and how well its capital structure is managed. Cash flow represents revenue received — or inflows — and expenses spent, or outflows. The total net balance over a specific accounting period is reported on a cash flow statement, which shows the sources…
The value of Alameda’s investments crashed, and FTX couldn’t return much of clients’ money because it had been given to Alameda. Some went to the fund’s lenders, and billions were spent on sponsorships, commercials and loans to top executives. That, too, was a major part of the case against Bankman-Fried. The average total compensation for…
Some smaller or newer organizations are fiscally sponsored, which means that they are projects or organizations that do not have tax-exempt status. Rather, a larger 501(c)(3) receives donations on their behalf and transfers the funds through a “grant” to them. Fiscal sponsors will list their fiscal sponsorships in their 990s and some may even provide itemized…
For example, a computer bought by a university specifically for a research project is a direct cost. In contrast, the costs of software licensing for programs that run on all the university’s computers are indirect costs. State reporting https://adprun.net/affordable-startup-bookkeeping-and-accounting/ requirements can be different from IRS reporting requirements applicable to Part IX. Report on line 1…
It’s quite complex because it takes into consideration not only the annual interest rate and the number of years but also the number of times the interest is compounded per year. After 10 years of compounding, you would have earned a total of $4,918 in interest. With savings and investments, interest can be compounded at…
Whether it’s checks, ATM transactions, or other charges, subtract these items from the bank statement balance. Note charges on your bank statement that you haven’t captured in your internal records. A reconciliation is the process of comparing internal financial records against monthly statements from external sources—such as a bank, credit card company, or other financial…
Certifications aren’t necessary to become a bookkeeper but can signal to employers that you have the training and knowledge to meet industry standards. After you have a couple of years of experience, you can earn the Certified Bookkeeper designation from the American Institute of Professional Bookkeepers by passing a series of exams. Learn more about…