Suppose the account shows a net loss of $5,000. You close the account by crediting Income Summary with $5,000 and debiting Retained Earnings for the same amount. If expenses were greater than revenue, we would have net loss. A net loss would decrease owner’s capital, so we would do the opposite in this https://www.bookstime.com/ journal… Read more »
Posts Categorized: Bookkeeping
Budgeting and Forecasting: How to Use Yardi AB&F
Self-paced, elearning courses, available through Yardi Aspire On Demand, provides learners with quality instruction, tailored to their needs and schedule. As a bonus, you can take full advantage of our extensive video training library on Client Central. Yardi Voyager is a database system that is used for apartment communities to keep track of their leasing… Read more »
Budgeting and Forecasting: How to Use Yardi AB&F
Self-paced, elearning courses, available through Yardi Aspire On Demand, provides learners with quality instruction, tailored to their needs and schedule. As a bonus, you can take full advantage of our extensive video training library on Client Central. Yardi Voyager is a database system that is used for apartment communities to keep track of their leasing… Read more »
Reconciling Account Overview, Process, How It Works
By reconciling financial records, such as bank statements, invoices, and receipts, businesses can identify discrepancies and irregularities and protect themselves against potential fraud. Reconciliation in accounting is needed whenever there are financial transactions to ensure accuracy and consistency in the records. It’s typically required at regular intervals, such as monthly, quarterly, or annually, to verify… Read more »
Closing Entries Definition, Examples, and Recording
The assumption is that all income from the company in one year is held for future use. One such expense that’s determined at the end of the year is dividends. The last closing entry reduces the amount retained by the amount paid out to investors. Permanent accounts track activities that extend beyond the current accounting… Read more »
Software & Solutions for Small Businesses
Popular review site G2 contains many positive Xero accounting software reviews, with an overall rating of 4.3 out of 5 stars from 600+ reviews. Here’s a user review that sums up many of Xero’s major strengths. Xero’s Premium plan ($62/month) comes with everything Xero has to offer. Here, you can record international transactions in your… Read more »
What Is Considered a High Debt-To-Equity D E Ratio?
This number represents the residual interest in the company’s assets after deducting liabilities. When evaluating a company’s debt-to-equity (D/E) ratio, it’s crucial to take into account the industry in which the company operates. Different industries have varying capital requirements and growth patterns, meaning that a D/E ratio that is typical in one sector might be… Read more »
8 Types Of Accounting Explained
It provides a clear picture of the financial health of your organization and its performance, which can serve as a catalyst for resource management and strategic growth. To illustrate double-entry accounting, imagine a business sending an invoice to one of its clients. An accountant using the double-entry method records a debit to accounts receivables, which… Read more »