I’ll be around if there’s anything that I can help with your reconciliation. Thanks for sharing the detailed process you’ve done during the reconciliation. I have very limited accounting skills so if possible please provide detailed instructions. Once done, you can link the subaccount to the parent account. You’re always welcome to comment below if… Read More

We often get asked about what our clients call the inventory penalty when they are expensing right away. They say their tax accountants are coming back and increasing their taxable income because of inventory, which costs them more in taxes. You can see that you also show nice, consistent gross profit margins of 50% each… Read More

The employer then submits that payment to the appropriate taxing agencies on behalf of the employee. Employees pay income taxes at the federal, state, and local levels through payroll deductions. New hires fill out Form W-4, which is used to calculate the federal income tax withheld from each paycheck and sent directly to the IRS… Read More

For example, the Galaxy’s Best Yogurt maintains a petty cash box with a stated balance of $75 at all times. Upon review of the box, the balance is counted in the following way. At the time the entry is made, the custodian will receive a $315 check that’s cashed and the money placed in the… Read More

To calculate the labor efficiency variables, subtract the hours worked by the hours budgeted, then multiply the result by the average hourly rate. An unfavorable direct labor efficiency variance happens when the actual hours worked is greater than the expected or standard hours. Learning how to calculate labor rate variance is as simple as gathering… Read More

The terms debit and credit signify actual accounting functions, both of which cause increases and decreases in accounts, depending on the type of account. That’s why simply using “increase” and “decrease” to signify changes to accounts wouldn’t work. There are a number of ways organisations report their CR/CSR activities, although most can be split into… Read More

That said, it’s better to have some grip on your WIP inventory than none at all. Since WIP inventory takes up space and can’t be sold for a profit, it’s generally a best practice for product-based businesses to minimise the amount of WIP inventory they have on hand. Effectively managing your inventory is one of… Read More

Toward the end of an accounting period, your accountant should clean up these entries as the organization begins paying them back to reflect the change. In this article, we’re going to be discovering how to master this fundamental step of payroll accounting by learning about how to prepare and record payroll journal entries. Pass the… Read More

To calculate the labor efficiency variables, subtract the hours worked by the hours budgeted, then multiply the result by the average hourly rate. An unfavorable direct labor efficiency variance happens when the actual hours worked is greater than the expected or standard hours. Learning how to calculate labor rate variance is as simple as gathering… Read More

Some payment gateways allow you to process transactions on your website while others require customers to be redirected to a separate page to enter their credit card information. This means that they follow the Payment Card Industry Data Security Standard (PCI DSS), which is a set of security standards that all businesses that process credit… Read More