The Importance of Internal Service Funds & Journal Entries

The Importance of Internal Service Funds & Journal Entries

    Defining Internal Service Funds

      For the most part, the accounting for internal service funds is utilized more in government agencies where one agency purchases services or products from another. An example might be a federal form supplier selling (or giving) forms to another government agency requiring the formsboth agencies really being under the umbrella of one entitythe government. Read more

The Matching Principle and Accounts Receivable – Managing Bad Debt

The Matching Principle and Accounts Receivable - Managing Bad Debt

The matching principle plays a key role in helping accountants develop a clear and consistent income statement. The overall goal of the matching principle is to ensure an accurate calculation of the revenues in the period in which the revenues were earned. The expenses then are followed by the revenues, meaning an accurate calculation must be done for this portion of the income statement as well. Read more

The Benefits of Cost Segregation

The Benefits of Cost Segregation

A cost segregation study can be very beneficial to you and your wallet. These types of studies are advantageous because they can help you significantly increase your cash flow by segregating the costs of various properties. The two major benefits of cost segregation are tax reduction and tax deferral. Cost segregation studies can also result in more accurate accounting and more accurate tracking of cost basis and depreciation.

With cost segregation, more income will be taxed at the capital gains rate as opposed to the typical income rate. Read more

Free Sample of an Accounts Payable Assessment

Free Sample of an Accounts Payable Assessment

    The Importance of Accounts Payable

    The accounts payable function is important within an organization because correct functioning of the enterprise depends on up to date knowledge of the liquidity within an organization. Every enterprise should know precisely what is owed to creditors at any time and should be alert to the possibility of liquidity problems if accounts falling due are more than liquid resources available to meet these debts.

    Knowledge of debts owed and when they are due allows an enterprise to engage in cash flow forecasts to show any periods in the coming months where liquidity will be tight. Read more

Explaining Accrued Expense Standards for Accounts Preparation

Explaining Accrued Expense Standards for Accounts Preparation

    Accounting Concepts

      Some important accounting concepts lie behind the accounting policies used in the preparation of financial statements of an enterprise. One of these concepts is that the enterprise should present its accounts as a going concern; that is on the assumption that the enterprise will continue to be in operation for the foreseeable future.

    Other accounting concepts are the concept of consistency in preparing financial statements from one period to another; prudence in the valuation of transactions; and the materiality concept under which transactions that are significant in relation to the financial statements as a whole, should be shown separately in the accounts, rather than being aggregated.

    Another very basic accounting concept is the accrual concept. Read more

The Truth About Extensions

The Truth About Extensions

Tax Return Extensions are one of the most abused and misunderstood concepts within the tax code. Today, I will dispel two of the biggest myths surrounding extensions. Have any other questions about extensions that are not covered in this article? Post your questions to the comments section and I will be sure to answer them!

Extensions Do Not Grant You Additional Time to Pay Your Tax

1) Tax Return Extensions only grant you additional time to file your tax return, they do not give you additional time to pay your taxes. Read more

What Happens if the Accounting Cycle is Not Followed?

    What Is the Accounting Cycle?

      The accounting process follows very specific guidelines and includes an accounting cycle flowchart . The accounting cycle consists of ten steps from identifying what is a transaction to recording the transaction appropriately to reconciling your trial balance.

    The purpose of the accounting cycle, if followed correctly, is to achieve accurate financial statements that show the true state of your business, its profits or losses. Read more

Point of Sales Software – How to Buy?

Point of Sales Software - How to Buy?

How To Buy Point Of Sales Systems

These days you can see Point of sales systems aka POS in many different restaurants, hotels, retail stores, medical centers and other local shops too. This digital system is a kind of electronic cash register and it proves to be very helpful for small businesses and medium sized businesses too.

If you have a small or medium sized business, you definitely need to have a point of sales system in your cash terminal, if you want to survive in the hard competition today.

The Working of POS

The user interface of this software contains many different columns. Read more