Category: Bookkeeping

Volunteers of all ages and backgrounds serve nonprofits in various roles and for varying lengths of time. Some, especially retirees, show up year after year, while others may volunteer for a special event or help out with a special project for one day or a weekend. A budget for non-profit organizations should function as a…

On top of that, it also allows companies to consider each product unit. Contribution per unit refers to the contribution margin for a single item manufactured or purchased. Companies can use this information for various decisions made during the production process. How does the contribution margin affect profit? If the fixed costs remained constant, the…

This statement offers insights into how a company’s financial decisions impact shareholder value, helping stakeholders make informed decisions regarding investments and corporate governance. The “statement of shareholders equity” is a financial document that outlines the changes in a company’s equity over a specific accounting period. It details the variations in retained earnings, dividends, share capital,…

If your organization is fortunate enough to attract in-kind donations, record these contributions to abide by legal standards and create plans to thank specific donors. According to the 2023 M+R Benchmarks Study, nonprofits spent an average of $0.11 on digital advertising for every dollar of online revenue in 2022. Nonprofit investment in digital advertising increased…

BX wiring emerged in the early 20th century for residential and commercial applications. Homeowners renovating their properties may still encounter these early forms of BX cable. The origin of the term “BX” remains uncertain, but it might be related to the product’s initial production in the Bronx borough of New York. This metal-clad cable is…

That’s the time during which the business could be reinvesting in itself, paying down debts, or otherwise addressing its own financial obligations. This means that all open accounts receivable are collected and closed every 73 days. In 73 days customers make a purchase, are reminded that payment is due, send payment, have payments processed, and…

Generally in the cash receipts journal to debit columns for cash receipts and cash discount and three credit columns for accounts receivable, sales and other accounts are there. Cash received from various sources other than cash sales and account receivables are recorded in other accounts column. Journals and ledgers are where the financial transactions are…

The accounting cycle is vital because it ensures that all financial information is accurate and up-to-date. This process provides a valuable record of a company’s financial activity. You only need to write the date, account names, debit and credit amount, and a note. They show the account name and a list of the debits and…

As stated above, most financial institutions provide companies with loan repayment schedules with the breakup of periodic payments split into principal and interest payments. Sometimes, amortization also which journal entry records the amortization of an expense refers to the reduction in the value of a loan. Let us understand the journal entry to amortize goodwill…

Adjustment entries can also impact a business’s stock-based compensation expenses. Adjustment entries can impact a business’s cash flow by affecting the timing of cash inflows and outflows. For example, if an adjustment entry is made to increase accounts receivable, this will increase the amount of cash that the business expects to receive in the future.…