For example, online retailers require payment before shipping; subscriptions are often paid in advance. To record this accrual, an adjusting entry is made that debits Repairs Expense and credits Accrued Expenses Payable. For instance, a company uses electricity to power its operations and pays for this consumption later when the meters have been read and…

It addresses the issue of identifying simple or overhead costs related to several contribution definition in accounting production projects. Contribution is the amount of earnings remaining after all direct costs have been subtracted from revenue. This remainder is the amount available to pay for any fixed costs that a business incurs during a reporting period.…

Whether you’re looking to start a new business or expand your current Accounts Payable Management operations, these top franchises offer excellent opportunities for success in the bookkeeping industry. The Tax Zone is an online tax preparation and e-filing service for individual taxpayers and small businesses. They offer a simple, easy-to-use interface that allows users to…

Cost-plus agreements can eliminate a certain level of risk for construction companies bookkeeping if a project has a considerable grey area. Cost plus is often used when it’s difficult to determine a project’s final scope and cost upfront. Though invoicing in construction is complex, setting expectations, maintaining organized records, and utilizing management tools can simplify…

This account balance or this calculated amount will be matched with the sales amount on the income statement. A current asset account that represents an amount of cash for making small disbursements for postage due, supplies, etc. A balance sheet line that includes cash, checking accounts, and certain marketable securities that are very close to…