February 14, 2023Charles Lutwidge
The Suspense Account – Everything You Need to Know
Definition Accounting is about hard numbers, but human errors naturally occur from time to time. If you own a business, you may wonder how accountants handle these errors and accurately balance your books despite them. Often, the bookkeeper can simply scan..
December 02, 2022Charles Lutwidge
Overview of Debt to Asset Ratio
Definition Companies have two options for acquiring assets: using its own capital, or borrowing funds from a third party. The balance between assets owned and borrowed has implications for the company’s financial future and level of risk. It is worth becoming..
November 21, 2022Charles Lutwidge
The Double Declining Balance Depreciation Method
Definition and formula Business owners need to know what they own and what they are owed. In order to manage their assets, business owners must learn a hard truth: that what they own (and are owed) tends to depreciate over the..
November 04, 2022Charles Lutwidge
What are Different Types of Liability Accounts?
Liabilities Definition Virtually every business deals with liabilities, or items that it owes or has borrowed. According to the exhaustive definition, liabilities represent probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or..
October 27, 2022Charles Lutwidge
Statement of Comprehensive Income
Running a successful business means keeping track of profit and cost. Of course, this is more easily said than done. Business owners rely on different types of reports to capture different aspects of their financial structure. One example is the Income..
November 11, 2021Charles Lutwidge
Accounting Errors and Error Corrections
Types of Errors in Accounting An error in accounting is a non-fraudulent error in double-entry bookkeeping transactions. In most cases, errors occur because the bookkeeper either lacks accounting expertise or is careless. The moment an error is spotted, investigative measures should..
November 09, 2021Charles Lutwidge
Payroll Taxes and Employer Responsibilities
Payroll Taxes and Employer Responsibilities A responsibility of every profit-making enterprise is the payment of taxes. Businesses require federal, state, and local services, and taxes are the cost of those benefits. One of the ways these agencies determine your company’s tax..
November 08, 2021Charles Lutwidge
Opening Entry in Accounting
Keeping of accounting records begins with an Opening Entry. If you are embarking on a new venture, these entries capture everything with which you are starting your business. On the other hand, if you already own an established business and are..
January 12, 2021Charles Lutwidge
Comparing BooksTime vs. QuickBooks Live
What is QuickBooks Live? QuickBooks is best known as accounting software makers. Recently, they started offering something new: a bookkeeping service called QuickBooks Live. The service is simple: they give you a bookkeeper who uses the QuickBooks app to keep track..