You may have a sales journal, a purchases journal, and an accounts receivables journal among others. Reconciliation is an accounting process that compares two sets of records to check that figures are correct, and can be used for personal or business... Read more
Receivables of all types are normally reported on the balance sheet at their net realizable value, which is the amount the company expects to receive in cash. Business owners know that some customers who receive credit will never pay their account. Read more
In the cost of revenue or services, fixed costs will not be included. Other indirect expenses likes, fixed salaries, administrative expenses will not be included in the cost of revenue. When claiming actual expense is where you track all expenses rel... Read more
Generally, one-half of FICA is withheld from employees; the other half comes from your coffers as an expense of the business. The amounts are a little different in 2012 because of the payroll tax break. The primary distinction between cash and. Read more
These are usually due to marketplace changes or unmet customer expectations. These will take further analysis to bring the next budget in line with reality. In common use favorable variance is denoted by the letter F - usually in parentheses .. Read more
While preparing a company’s income statement, you should consider the effects of both operating and non-operating components. Earnings are perhaps the single most studied number in a company'sfinancial statements because they show profitability... Read more
The easiest way to create a revenue forecast is to input your annual growth rate. Look at the percentage growth in revenue over previous periods, and use that information to make an informed assumption about your future revenue. Pro forma financial. Read more
If a cost sheet includes sales and profit, it is called a statement of cost and profit. In a cost sheet, the total cost and the unit cost of a product are presented in analytical form showing the details of various. Read more
The estimated percentages are then multiplied by the total amount of receivables in that date range and added together to determine the amount of bad debt expense. The table below shows how a company would use the accounts receivable aging method. Read more
Better credit risk management also presents an opportunity to greatly improve overall performance and secure a competitive advantage. Risk-based pricing – Lenders may charge a higher interest rate to borrowers who are more likely to default, a practi... Read more
