July 06, 2021
Charles Lutwidge
Revenue Recognition Principle
Overview As we all know, earning revenue is the purpose of doing business. Revenues are created from day-to-day activities that a business was created to do, whether it is manufacturing and/or selling goods or providing services. Revenue is the income...
Delegate your financial records to a highly qualified bookkeeper and forget about bookkeeping stress forever.
July 05, 2021
Charles Lutwidge
What Is Chart of Accounts Numbering and Why Do You Need It?
Overview Chart of Accounts serves as a basis for the whole accounting process. It is a place where bookkeepers list all the account titles that they have access to and can use for recording various business transactions in the company’s...
July 04, 2021
Charles Lutwidge
Basic Explanation of Order of Liquidity
What is liquidity? Liquidity in accounting is the ability to quickly turn assets into their monetary equivalent at good prices. There are high and low liquidity assets, as well as non-liquid assets. The concept of liquidity can be applied to...
July 03, 2021
Charles Lutwidge
Expense Recognition Principle: Meaning and Importance
In the modern business world, all enterprises, regardless of their type and form of ownership, maintain accounting records of business operations in accordance with the current legislation. Consequently, in the course of the organization’s activities, expenses are always an inevitable...
July 02, 2021
Charles Lutwidge
What is Tax Shield?
Overview Tax payments is a topic that you get familiar with as soon as you get your first job or start your own business. Many find the tax payments to be a big burden for them financially in addition to...
July 01, 2021
Charles Lutwidge
What Is Depreciation Tax Shield?
Depreciation Depreciation is an accounting method that calculates the life and wear value of tangible assets, and the tangible value of these assets is included in parts in the cost of the final product or service. We can say that...
June 30, 2021
Charles Lutwidge
Post Closing Trial Balance
Business accounting is an integral part of the business process and should be treated with special responsibility. Recordkeeping includes the following main points: preparation of the necessary documentation; data processing; preparation of financial statements; contacting regulatory authorities and financial institutions....
June 27, 2021
Charles Lutwidge
What Is Net Sales and How to Calculate It?
Sales volume is the main indicator of the company’s performance. It can be expressed in the actual number of units of products sold or in the total amount of funds received on the firm’s account after the sale of goods....
