The company can make the unearned revenue journal entry by debiting the cash account and crediting the unearned revenue account. When a customer prepays for a service, your business will need to adjust the unearned revenue balance sheet and journal entries. Your business will need to credit one account and debit another account with corresponding[…]

First, let’s get a clearer understanding of the differences between AP and NP. A retail store will use accounts payable to manage its short-term debts to suppliers for inventory purchases. But that same store might take out a note payable to finance a storefront renovation or expansion into a new location. Key Differences Between Accrued[…]

The Times Interest Earned (TIE) ratio is an essential financial metric in strategic decision-making for investors, creditors, and business management. It highlights a company’s capacity to fulfill its interest expenses based on operating income. While TIE exclusively evaluates interest-payment capabilities, it is often considered alongside other financial ratios to provide a comprehensive view of a[…]

The allure of consignment lies in its simplicity and potential for mutual benefits. Imagine a platform where goods can be showcased and sold without the owner having to open a store or manage online sales. Its flexible buying average growth rate for startups and selling features include advanced payouts, item trades, and a buyback scheme[…]

Service Revenue increases (credit) for $1,500 because service revenue was earned but had been previously unrecorded. Interest can be earned from bank account holdings, notes receivable, and some accounts receivables (depending on the contract). Interest had been accumulating during understanding budget period the period and needs to be adjusted to reflect interest earned at the[…]

Our dedicated team (including five former nonprofit auditors) focuses solely on nonprofit organizations to help navigate the complicated maze of accounting. However, it doesn’t really matter where the revenue is coming from, as long as the unrestricted net assets amount is positive and it positively contributes to the overall financial health of the non-profit organization.[…]

A high ratio typically means good inventory management, while a low ratio might indicate excess inventory or poor sales. The inventory turnover ratio is a powerful metric that provides crucial insights into your business’s operational efficiency and financial health. By understanding and optimizing this ratio through careful monitoring and strategic adjustments, you can improve cash[…]

This ensures that all transactions are encrypted and protected from fraud. If you plan to sell internationally, your payment gateway must support multiple currencies and cater to customers in different regions. Some gateways are better suited for local markets, while others are designed for global commerce. If you already have a POS system, choose a[…]

Note that there are a few exceptions, since some service industries do not have direct material costs, and some automated manufacturing companies do not have direct labor costs. For example, a tax accountant could use a job order costing system during tax season to trace costs. The one major difference between the home builder example[…]

Along with offering the typical outsourced bookkeeping services, AccountingDepartment.com provides outsourced controller services. With this service, their CPAs manage bookkeeping while also budgeting, forecasting, doing job costing, managing cash flow, tracking inventory, and performing other financial management tasks on your behalf. The Essential plan ($249 a month if billed annually or $299 billed monthly) focuses[…]