Category: Bookkeeping

Since then, additional legislation such as the Sarbanes-Oxley Act of 2002 extended public-company disclosure requirements and government oversight of them. The public and politicians alike blamed a lack of transparency in corporate operations for intensifying if not outright causing the financial crisis. Federal government-mandated disclosure came into being in the U.S. with the passage of the Securities […]

You also rely on your employees to ensure your systems run smoothly. They are the ones that will spot inefficiencies and areas for improvement. Think of your employees as building and maintaining the base of the skyscraper that is your business. Employees don’t just nurture the organization; they also make it a fun place to […]

Showing enthusiasm and being invested in your role will always be a treasured asset in any workplace. Having a genuine passion for your job can boost personal growth and career advancement. But while it benefits you, it can also heighten the success of the company you work for. Health insurance, dental plans, sick days, paid vacations, […]

It needs to recognize a portion of the revenue for the contract in each month as services are rendered, rather than waiting until the end of the contract to recognize the full revenue. Accrued revenue may be contrasted with realized or recognized revenue, and compared with accrued expenses. Suppose you run a SaaS company and […]

Under cash accounting, income and expenses are recorded when cash is received and paid. In contrast, accrual accounting does not directly consider when cash is received or paid. In contrast, accrual accounting uses a technique called double-entry accounting. When the consulting company provided the service, it would enter a debit of $5,000 in accounts receivable […]