September 26, 2020
Charles Lutwidge
Balance Sheet Template and Structure
Balance sheet – What is it? Everything in business, as in life, must be balanced. However, in business, this means something else. Even if you are not an accountant, you probably have heard about a Balance sheet as a thing...
Delegate your financial records to a highly qualified bookkeeper and forget about bookkeeping stress forever.
September 25, 2020
Charles Lutwidge
Cash Short and Over Account
Overview Cash includes coin, paper money, checks, and money orders. Money on deposit with a bank and other financial institutions that are available for withdrawal is also considered cash. Cash is the asset most likely to be stolen or used...
September 25, 2020
Charles Lutwidge
Dividends Account – Explanation and Example
Definition Every once in awhile, a company may decide to distribute some of its earnings to its stockholders/shareholders. In financial accounting, they are referred to as dividends. They can happen frequently, such as every quarter, or a corporation may decide...
September 25, 2020
Charles Lutwidge
What is a Trial Balance?
Definition By definition, a Trial Balance is not a formal financial statement. It is merely the ledger accounts listed along with their respective closing debit or credit (normal) balances on a certain date. Other financial statements are usually prepared after...
September 02, 2020
Charles Lutwidge
Manufacturing Overhead Costs
Any business activity involves costs. Money is spent on diverse processes and purchases: equipment maintenance, raw materials, packaging, transportation, etc. Three are also costs associated with management processes, where wages and salaries are a big percentage of these spendings. Such...
September 02, 2020
Charles Lutwidge
Gross vs. Net Income
Sometimes, people, including business owners, get gross and net income confused. Thus, being able to tell the difference allows one to properly evaluate accounting reports, make financial plans, know what to provide when asked for one or the other, and...
September 02, 2020
Charles Lutwidge
A Simple Explanation of Straight Line Depreciation
Definition and Formula The method of accounting for the allocation of costs of any physical or tangible asset during its useful life is known as depreciation. These costs arise due to: Use Wear and tear The passing of time Obsolescence....
September 02, 2020
Charles Lutwidge
Internal Controls in Accounting
What are Internal Controls? Let’s first look at the definition of internal controls in accounting. Internal control is a management process involving the people of the organization (the responsibility lies with management and the board of directors). Every company has...
