Category: Bookkeeping

When a payment arrives with a recognized sales discount, recording it accurately is essential. The amount paid on the invoice is recognized as revenue, while the discount amount is posted to a sales discount ledger account. The direct costs portion of the income statement is where net sales can be found. Accountants regularly complete bank…

In this case, sales revenue has been earned but payment has not yet been received. Under the accrual system of accounting, accrued revenue is recognized and recorded because revenue has been earned even though no cash has been received. Therefore, if sales revenue has been received in advance, and the goods are yet to be…

Often the action is the signing of a loan, rental lease or service contract. Another key feature of incurred debt is that it typically remains valid for a specific amount of time. The last key feature of incurred debt is that it decreases the amount of disposable income you have available. Usually, accrued liabilities occur…

In the first case, you have more cash on hand than your company has actually earned. In the second case, you have less cash on hand than you have earned, and you might not even receive all the money you have earned. This shows the importance of keeping track of your incurred expenses and earned…

The term “blue collar” originated from workers wearing durable blue uniforms suitable for tough tasks, distinguishing them from white collar office workers. Since many blue-collar jobs consist of mainly manual labor, educational requirements for workers are typically lower than those of white-collar workers. Often, not even a high school diploma is required, and many of…

Delivery drivers are the unsung heroes ensuring that packages, food, or other goods reach our doorsteps safely and on time. Whether it’s the latest gadget you ordered online or a hot pizza for Friday night, a delivery driver plays a crucial role in getting it to you. On a typical day, they grind coffee beans,…

The Purchase Day Book, also known as the Purchases Journal, is a vital accounting record used by businesses to systematically record all credit purchases of goods. It serves as a chronological log of transactions related to purchases, providing valuable information for accurate financial reporting and management decision-making. You may balance accounting journals weekly, biweekly, or…

Financial accounting is the cold hard facts that get reported externally to auditors. They all work off the same foundation, they are just used in different situations to accomplish different tasks. Don’t worry about any of these (yet), by the end of this post you will understand the basics surrounding what is project accounting and…

Abacus is a cloud-based tech provider that offers legal practice management software. The company is one of the longest standing, having been in business for 25 years. Founded in 2008, Rocket Matter is an all-in-one legal practice management platform designed for small and mid-sized https://www.bookstime.com/articles/legal-e-billing law firms. What billing software do law firms use? In…

Then, you can start estimating how much you’ll have taken out of your paychecks for the full year. If it doesn’t seem like it’ll be enough to cover your whole tax bill, or if it seems like it’ll end up being way too much, you can submit another W-4 and adjust. If you want extra…