Category: Bookkeeping

Inconsistencies in COGS calculation can arise due to changes in inventory accounting methods or errors in inventory count. Regular audits and consistent accounting practices are crucial in maintaining accuracy and reliability in COGS reporting. This article will delve deep into the realms of COGS, offering insights into its calculation, significance, and impact on business operations.…

This step keeps the financial statements truthful, including balance sheets and income statements. The post-closing trial balance is an essential tool in the accounting cycle, providing a final check on the accuracy and completeness of the financial records. By ensuring that all temporary accounts are closed and permanent accounts are balanced, the post-closing trial balance…

This indicates a declining trend in variable expenses over three years. Common-size financial statements often include comparative data, showing each line item Bookkeeping for Painters compared to previous periods. Vertical analysis, when combined with other analytical methods, empowers you to make informed decisions, evaluate financial performance, and drive business success. So you may have previously…

If the cash recorded in the register is higher than the physical cash in hand, it falls under cash short. The accounting for the cash over and short account is straightforward. It requires determining the difference between the value of monetary transactions recorded in the system with actual cash. As stated above, any discrepancy during…

Lastly, a controller issues monthly financial reports highlighting any critical issues that you need to understand and possibly address. A bookkeeping service offers a three-tiered approach to developing and maintaining your company’s overall financial processes and management. Cloud-based accounting software like FreshBooks is a comprehensive program that offers robust, trustworthy, and cost-effective financial services. If…