Unearned revenue can make your bank account look healthier than it really is. While it gives you immediate cash to work with (great for paying bills), remember that this money comes with strings attached – you still need to deliver products or services. The smart approach is to treat unearned revenue as “spoken for” and […]
Category Archives: Bookkeeping
Spend analysis can help you reduce costs, mitigate risks, improve sourcing, streamline processes, and build better supplier relationships. Without trusted spend reporting you can’t show your value to the business. When linked with an ERP system, automated spend analysis can take advantage of the live stream of data resulting from transactional exchanges with suppliers. These […]
This figure reflects the company’s ability to maintain some of its earnings for future growth. The net income helps show what amount the company sets aside for dividend payments, plus any monies for any losses that might have occurred. The example balance sheets for Edelweiss revealed how retained earnings increased and decreased in response to […]
While challenges exist, especially with manual processes, automation provides a solution that enhances efficiency and reduces errors. Incorporating payment reconciliation into regular financial management practices is essential for any business aiming to maintain financial health and foster trust with stakeholders. To ensure effective payment reconciliation, businesses should follow best practices. Conduct reconciliation regularly, ideally on […]
To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual. Form W-7(SP), Solicitud de Número de Identificación Personal del Contribuyente del Servicio de Impuestos Internos is available for use by Spanish speakers. Most U.S. financial institutions require […]
Although accountants generally do not increase the value of an asset, they might decrease its value as a result of a concept known as conservatism. For example, after a few months in business, Joe may decide that he can help out some customers—as well as earn additional revenues—by carrying an inventory CARES Act of packing […]