Category: Bookkeeping

  • What is the matching principle?

    This is because a company cannot generate sales or revenues without paying expenses like the cost of labor, raw materials, marketing expenses, selling expenses, administrative expenses, or other miscellaneous expenses. Product costs refer to the expenses incurred during the product’s manufacturing. The accrual or matching principle states that we should simultaneously calculate the cost of…

  • Nonprofit Accounting: Essential Principles and Best Practices

    Our professional opinion is that the majority of nonprofits will benefit from outsourcing their bookkeeping and accounting needs, working directly with nonprofit accounting experts. It’s an affordable option that can provide access to deep nonprofit accounting experience and expertise. Internal controls not only limit cases of fraud, but often aid in catching errors. nonprofit accounting…

  • What Financial Statement Lists Retained Earnings?

    Usually, this is calculated using data taken from multiple periods and involves dividing the earnings per share (EPS) by the retained earnings per share. Again, this is because they use the majority of their retained earnings to finance expansion rather than dividends. On the other hand, investors prefer securities that pay a constant rate of…

  • Double Declining Balance Method: Formula & Free Template

    This is the difference between the acquisition cost (adjusted basis) and the salvage value. If you will be printing out the depreciation schedule, indicate whether or not you want to round the currency amounts in the report to the nearest dollar. Enter the number of years you expect this asset to be in service for.…