Record any omitted entries in your books for the correct accounting period. At some point, you might do the opposite of a data entry error, too. You may forget to record a transaction, which is…
Timing differences occur when the activity that is captured in the general ledger is not present in the supporting data or vice versa due to a difference in the timing in which the transaction is…
It’s easy to tell when a transaction occurred—the money comes in or out of the bank. In the cash system, you do not pay taxes on funds you have not yet received. So, there is…
Consider implementing an online portal where employees can easily access and update their personal information. Running a business requires you to have a handle on a whole host of things. Having a payroll administrator can…
For example, if XYZ company expected to produce 400 widgets in a period but ended up producing 500 widgets, the cost of materials would be higher due to the total quantity (volume) produced. This type…
For example, if an individual invests $20,000 in the company but also brings in a $10,000 liability, their initial Capital is $10,000 (investment minus liability). After you enter the opening balance, go to your account…
Refer to Employer ID Numbers for more information.The following form is available only to employers located in Puerto Rico, Solicitud de Número de Identificación Patronal (EIN) SS-4PR PDF. You will need to complete Form SS-5,…
A note payable can be defined as a written promise to pay a sum of the amount on the future date for the services or product. On the maturity date, only the Note Payable account…
The average collection period amount of time that passes before a company collects its accounts receivable (AR). In other words, it refers to the time it takes, on average, for the company to receive payments…
Though allocation bases can vary, the most commonly used are direct machine hours and direct labor hours. The calculation result means that 7.25% of sales revenue will need to go toward overhead manufacturing costs. The…