Category: Bookkeeping

The best online bookkeeping services are affordable and easy to use, offer a wide range of bookkeeping solutions, and provide easy access to dedicated bookkeepers. Many of the top services also have add-on services, such as catch-up bookkeeping, payroll, and tax filing, which can streamline your work. Its pricing can be a bit confusing as there is a sliding scale based on not only the accounting basis but also the amount of monthly expenses and the frequency and type of…

At the end of the balance sheet total sum is calculated, and according to the rule of thumb total assets and total liabilities should be the same in amount. Long term and short term liability are written on the right side of the balance sheets. A company can use its balance sheet to craft internal decisions, though the information presented is usually not as helpful as an income statement. A company may look at its balance sheet to measure risk,…

A bond sold at a premium to par has a market price that is above the face value amount. When a bond is issued at a price higher than its par value, the difference is called bond premium. The bond premium must be amortized over the life of the bond using the effective interest method or straight-line method. The discount on bonds payable account has a debit balance of 8,663 which needs to be amortized to the interest expense account…

This is the equation for a line that you studied in high school. Today we will use this equation to train our model with a given dataset and predict the value of Y for any given value of X. Linear Regression is the simplest form of machine learning out there. In this post, we will see how linear regression works and implement it in Python from scratch. The ordinary least squares method is used to find the predictive model that…

Thus, the cash flow statement (CFS) or footnotes section are recommended financial filings to obtain the precise value of a company’s depreciation expense. The double declining method (DDB) is a form of accelerated depreciation, where a greater proportion of the total depreciation expense is recognized in the initial stages. Depreciation is a non-cash expense that allocates the purchase of fixed assets, or capital expenditures (Capex), over its estimated useful life. Suppose, however, that the company had been using an accelerated…

If it has a salvage value, then the depreciable base is the amount you paid minus the salvage value. To help you get a sense of the depreciation rates for each method, and how they compare, let’s use the bouncy castle and create a 10-year depreciation schedule. You divide the asset’s remaining lifespan by the SYD, then multiply the number by the cost to get your write off for the year. That sounds complicated, but in practice it’s pretty simple,…

The aging method also makes it easier for management to make changes in credit policies and discounts offered to customers. Also, generating the report before the month ends will show fewer receivables whereas, in reality, there are more pending receivables. Management should match their credit terms to the periods of the aging reports to get an accurate presentation of the accounts receivable. The allowance method estimates bad debt expense at the end of the fiscal year, setting up a reserve…

Thus, the cash flow statement (CFS) or footnotes section are recommended financial filings to obtain the precise value of a company’s depreciation expense. The double declining method (DDB) is a form of accelerated depreciation, where a greater proportion of the total depreciation expense is recognized in the initial stages. Depreciation is a non-cash expense that allocates the purchase of fixed assets, or capital expenditures (Capex), over its estimated useful life. Suppose, however, that the company had been using an accelerated…

If it has a salvage value, then the depreciable base is the amount you paid minus the salvage value. To help you get a sense of the depreciation rates for each method, and how they compare, let’s use the bouncy castle and create a 10-year depreciation schedule. You divide the asset’s remaining lifespan by the SYD, then multiply the number by the cost to get your write off for the year. That sounds complicated, but in practice it’s pretty simple,…

Your bookkeeper reconciles your accounts, categorizes your transactions, and produces your financial statements. They also make adjustments to your books to ensure they’re accurate and tax-compliant. Occasionally your bookkeeper might need your input on things like categorizing a transaction properly, but we try our best to make bookkeeping as hands-off as possible for you. You can also book a call with your bookkeeper (or send them a message) whenever you’d like. There’s no extra fee or hourly charges for support—we’re…