Transactions involving assets, such as purchase of machinery or receipt of cash, are recorded in permanent accounts. As a best practice, accountants should understand the purpose of each account and apply transactions to the appropriate account accordingly. The principle of consistency should also be maintained to ensure accurate comparisons over different accounting periods. Equity accounts…

Our accounts receivable management offerings help you keep your payments in check. By taking the customer collections off of you, we can get you to that pay day without ruining relationships with customers. One of the locations, a small-format store on Northeast Halsey Street, was open for less than three years before it was closed….

However, if your self-employed income is more than 150k then you must put away 110% of what you did the prior year. You can avoid late payments with a simple iCal or Google Calendar annual reminder and can avoid underpaying with a safe harbor estimate. Some fringe benefits that aren’t typically reported as part of…

Bad debt expense is the loss that incurs from the uncollectible accounts, in which the company made the sale on credit but the customers didn’t pay the overdue debt. The company usually calculate bad debt expense by using the allowance method. When sales transactions are recorded, a related amount of bad debt expense is also…

You must keep records that show the specific identification of each piece of qualifying section 179 property. These records must show how you acquired the property, the person you acquired it from, and when you placed it in service. Land and land improvements do not qualify as section 179 property. Land improvements include swimming pools,…

However, let us consider the effect of the credit terms 2/10 net 30 on this purchase. On January 1, 2018, Company A sold computers and laptops to John on credit. On January 30, 2018, John made the full payment of $10,000 for the computers and laptops. Business owners love Patriot’s award-winning payroll software. You’ll also…