Bookkeeping

For example, the rise and fall of volume in steel products may affect revenue, hindering profitability due to fixed cost. The business’s financials should speak about the industry’s sustainability through top-line and bottom-line growth and higher operating and Net profit margin. The going concern assumption reinforces the matching principle, which states that revenues and expenses […]

What are closing entries? The purpose of closing entries is to prepare the temporary accounts for the next accounting period. In other words, the income and expense accounts are “restarted”. This is the second step to take in using the income summary account, after which the account should have a zero balance. Likewise, shifting expenses […]

To write in a deductive manner, place supporting facts in subsequent sentences for readers who are unfamiliar with the subject. A memo written in an inductive fashion presents ideas in increasing order of importance. If you must give bad news or if your reader may not understand the main idea without prior preparation, use this […]

This is commonly illustrated using T-accounts, especially when teaching the concept in foundational-level accounting classes. However, T- accounts are also used by more experienced professionals as well, as it gives a visual depiction of the movement of figures from one account to another. The early beginnings and development of accounting can be traced back to […]

The daily reinvest rate is the percentage figure that you wish to keep in the investment for future days of compounding. As an example, you may wish to only reinvest 80% of the daily interest you’re receivingback into the investment and withdraw the other 20% in cash. ______ Addition ($) – How much money you’re […]

Why and when do professionals use the EOM acronym? Don’t be afraid to think outside the box and experiment with unique variations of EOM that align with your brand or personal style. However, ensure that your EOM variations remain clear and easily recognizable, ensuring that they convey the purpose of the email effectively. Start by […]

The Taxpayer Advocate Service is an independent organization within the IRS that helps taxpayers and protects taxpayers’ rights. We can offer you help if your tax problem is causing a financial difficulty, you’ve tried and been unable to resolve your issue with the IRS, or you believe an IRS system, process, or procedure just isn’t […]

The total financial and nonfinancial compensation an employer pays an employee for work performed. An application that employers use to automate, manage, and streamline payroll processes, including wage payment and tax reporting. Money an employee earns upon completing a task — typically for selling a specific amount of employer goods or services. Exempt vs. Non-Exempt […]