February 14, 2023
Charles Lutwidge
The Suspense Account – Everything You Need to Know
Definition Accounting is about hard numbers, but human errors naturally occur from time to time. If you own a business, you may wonder how accountants handle these errors and accurately balance your books despite them. Often, the bookkeeper can simply...
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December 02, 2022
Charles Lutwidge
Overview of Debt to Asset Ratio
Definition Companies have two options for acquiring assets: using its own capital, or borrowing funds from a third party. The balance between assets owned and borrowed has implications for the company’s financial future and level of risk. It is worth...
November 21, 2022
Charles Lutwidge
The Double Declining Balance Depreciation Method
Definition and formula Business owners need to know what they own and what they are owed. In order to manage their assets, business owners must learn a hard truth: that what they own (and are owed) tends to depreciate over...
November 04, 2022
Charles Lutwidge
What are Different Types of Liability Accounts?
Liabilities Definition Virtually every business deals with liabilities, or items that it owes or has borrowed. According to the exhaustive definition, liabilities represent probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets...
October 27, 2022
Charles Lutwidge
Statement of Comprehensive Income
Running a successful business means keeping track of profit and cost. Of course, this is more easily said than done. Business owners rely on different types of reports to capture different aspects of their financial structure. One example is the...
November 11, 2021
Charles Lutwidge
Accounting Errors and Error Corrections
Types of Errors in Accounting An error in accounting is a non-fraudulent error in double-entry bookkeeping transactions. In most cases, errors occur because the bookkeeper either lacks accounting expertise or is careless. The moment an error is spotted, investigative measures...
November 09, 2021
Charles Lutwidge
Payroll Taxes and Employer Responsibilities
Payroll Taxes and Employer Responsibilities A responsibility of every profit-making enterprise is the payment of taxes. Businesses require federal, state, and local services, and taxes are the cost of those benefits. One of the ways these agencies determine your company’s...
November 08, 2021
Charles Lutwidge
Opening Entry in Accounting
Keeping of accounting records begins with an Opening Entry. If you are embarking on a new venture, these entries capture everything with which you are starting your business. On the other hand, if you already own an established business and...
