Unearned Revenue vs Unearned Income Key Different Explained

For instance, in the United States, under the Securities and Exchange Commission, a public company must meet specific criteria for the revenue to be recognized as such. Later, when part 2 of the sale occurs, the buyer and the seller each make another pair of journal entries, such as those shown in Exhibit 3. The […]

QuickBooks Features: Invoicing, Expenses & Cloud Accounting

Then, you can review your trips, classify them as personal or business, and mark them as billable to a customer. Billable mileage expenses will then be available waveapps accounting software to add to the next invoice you create for that customer automatically. You can pay bills online in QuickBooks using the online bill payment feature. […]

Financial Accounting Online Course

Our instructors offer relevant, real-world expertise to help you understand and navigate the field. Plus, with our growing, nationwide alumni network, you’ll have the potential to tap into a number of internship and career opportunities. With a Bachelor of Science (BS) in Accounting and Finance from Southern New Hampshire University, you can help drive the financial health and […]

Depreciation Expense Journal Entry Example

Learn how to optimize existing processes, collaborate efficiently, and provide more value to your organization. Salvage value can be based on past history of similar assets, a professional appraisal, or a percentage estimate of the value of the asset at the end of its useful life. Check out our financial modeling course specialized in the […]

A Guide to Closing Entries: How to Prepare Them

Close the income summary account by debiting income summary and crediting retained earnings. Instead the balances in these accounts are moved at month-end to either the capital account or the retained earnings account. Keeping up with your spending is important to help ensure you don’t overspend or overdraw your checking account. The best way to […]

Law Firm Accounting and Bookkeeping 101

Three-way reconciliations are an important part of practicing law and must be performed on a regular basis to ensure accuracy in your financial records. For example, when a law firm pays its rent, the transaction would be recorded as a debit to the asset account for cash and a credit to the liability account for […]

Top Free Accounting Software Picks

Having this detailed picture of your complete financial picture affords small businesses the nimbleness so critical to their survival. Most accounting sites can connect to thousands of banks, so yours is likely among them. Accounting software for independent contractors is accounting software that is geared toward independent contractors rather than big companies. The software can […]

What is bookkeeping, and why is it important?

While it may be easy to confuse the two, they are not the same thing. Accounting is the umbrella term for all processes related to recording a business’s financial transactions, whereas bookkeeping is an integral part of the accounting process. There’s good news for business owners who want to simplify doing their books. The key […]

What is Payroll Accounting? Payroll Journal Entry Guide 2021

Changes in employee earnings may result in an increase or decrease in the amount of accrued payroll recorded. If an employee’s earnings increase, the amount of accrued payroll will also increase. Conversely, if an employee’s earnings decrease, the amount of accrued payroll will decrease. Calculating payroll accruals basically means adding up all outstanding payroll liabilities […]

Accounts Receivable Management: What It Is, How to Improve It

Typically, these AR reports will include the billed amount, any payments that apply to the invoice, and the current balance that is due. They require significant manual effort that leads to errors like inaccurate data entry, delayed invoicing, miscommunications, late payments, and ineffective follow-up. Individual phone and email outreach or physically mailing paper checks and […]