Category: Bookkeeping

Performing regular bank reconciliations helps you stay on top of cash flow, keep organized records for tax season, and minimize the risk of fraud and theft. We’ll explore the definition of bank reconciliation, why it’s important, and a step-by-step process for performing bank reconciliations. We’ll also look at common sources of discrepancies between financial statements…

In fact, sometimes recording income as cash is received is perfectly appropriate (and less accounting hassle). Let’s dive into a few of the most common pain points nonprofits encounter with revenue recognition and discuss how to work through them. Conditional revenue refers to situations in which the contributor will only provide funding if specific conditions…

Plus, you can calculate sales tax automatically, customize payment terms and enjoy access to easy-to-understand cash flow insights. It also features a well-laid-out, clutter-free dashboard with individual tabs for sales, purchases, accounting, banking, payroll and reports. Accounting software helps business owners understand how money flows in and out of their businesses. This can help you…

Where Wave falls behind, however, is its customer support. There’s no live support unless you pay for it so you’ll have to dig for the answers to your questions in the help center or cross your fingers that the automated chatbot will help you out. Find a platform that makes accounting as easy as possible…

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in…

It also highlights how this figure can play an important role in determining whether or not a company has enough capital to meet its financial obligations. Certified Public Accountant Cash takes up a large portion of the balance sheet, but cash is actually not considered an asset because it is expected that cash will be…

Projections of expected revenues and acquisition costs in particular help marketing leaders understand the cost parameters within which they need to hit their pipeline and revenue goals. Easily automate key processes, track performance, and gain actionable insights into your startup’s financial health. Key financial statements are the backbone of your startup’s financial plan, clearly showing…

Don’t hesitate to consult with a tax professional to ensure you’re meeting all your obligations. Finding the right accounting software can feel overwhelming with so many options available. But choosing wisely early on can save you headaches as your business grows. Key Features to Look For Whether you’re forecasting revenue, calculating costs, or analyzing profits,…

Nonprofit financial statements are formal records that provide a comprehensive overview of a nonprofit organization’s financial health and activities. Unlike for-profit businesses, nonprofits have unique reporting requirements to show how funds are used and managed. It’s an essential tool for nonprofit organizations to ensure financial accountability, transparency, and stakeholder confidence. The nonprofit statement of financial…

Regardless of the actual costs incurred, the contractor is paid the agreed-upon amount upon project completion or based on specific milestones. Many construction companies use a “completion percentage” approach, meaning they calculate estimated taxes based on quarterly income and expense reports. It’s a small part of the payment held back to make sure contractors and…