Bookkeeping

Although there are many possible accounts in a general ledger, they can all usually be classified into permanent and temporary categories. Let’s look at some of the accounts small businesses may use in the general ledger. To better understand both debit and credit rules and how posting into the ledger is done, let’s check out…

If you anticipate needing Social Security in the future, you must have five years of covered earnings to maximize the amount of money you receive. Meals and lodging provided for free or at a reduced rate to an employee are considered wages. However, if the meals and lodging are given for the employer’s convenience and…

Firms like Charter Group Fund Administration exemplify this by delivering consistent and accurate reporting, which is exactly what investors expect. When choosing a third-party administrator, it’s essential to evaluate their technology for scalability, security, and integration capabilities. Additionally, their experience with funds of similar size and complexity should be considered. The goal is to build…

The income statement shows the financial results of a business for a designated period of time. An expense appears more indirectly in the balance sheet, where the retained earnings line item within the equity section of the balance sheet will always decline by the same amount as the expense. Salaries not only represent a significant…

Direct materials are raw materials and components that become part of the finished product and can be directly traced to it. For instance, the wood used by a furniture manufacturer or the fabric for clothing are considered direct materials. To calculate the water evaporation rate, input variables like wind speed, surface area, and temperature difference…

In short, direct costs are directly related to the product being sold, while indirect costs are what you spend money on to earn sales. If you’re familiar with operating expenses, you might be wondering what the difference is between SG&A and operating costs. SG&A can be broken down into selling expenses and general and administrative…

By doing this, you’ll reduce the risk of inventory errors and increase the efficiency of your operations. You should have a detailed process in place for reporting and handling damaged goods. This can include a regular inspection of consigned items and a system for notifying the supplier of damaged or unsellable stock. Not only does…