In this example, the $85,200 total is the net realizable value, or the amount of accounts anticipated to be collected. However, the company is owed $90,000 and will still try to collect the entire $90,000 and not just the [...]

In a competitive business landscape, customer satisfaction is paramount. And effective backlog management is instrumental in delivering exceptional customer experiences. An item is added to the backlog management list if it is valuable a stakeholder. The backlog could be [...]

You can upload expense receipts in bulk, categorize them according to the appropriate expense account, and then submit them for approval. Nonetheless, Plus has an advanced job costing capability, which is helpful for construction and contracting firms. If comparing [...]

The expense ratio is combined in practice with the loss ratio to give an insurance company’s combined ratio. Compounding these pressures, the economic impacts of the COVID-19 pandemic are becoming more widespread each day, with limited clarity as to [...]

The impact of AI in accounting will be colossal as the accounting profession will undergo a huge technological transformation. But most of the features like automation, enhanced accuracy, effective data handling, security, etc., that this technology entails will positively [...]

And, record new equipment on your company’s cash flow statement in the investments section. Luckily, the IRS recognizes this and allows you to deduct up to $5,000 of these start-up expenses in the year your business begins. Any money [...]

The depreciation expense in this method is calculated by subtracting the residual value of an asset from the cost and dividing the remainder by a number of years(useful life). The straight-line method’s illustration has been given in the above [...]

Contingent assets should not be recognized but should be disclosed in those cases where an inflow of economic benefits is probable. When the realization of income is virtually certain, the related asset is not a contingent asset, and its [...]

If the company takes $8,000 from investors, its assets will increase by that amount, as will its shareholder equity. All revenues the company generates in excess of its expenses will go into the shareholder equity account. These revenues will [...]

Before getting a business loan or meeting with potential investors, a company has to provide an up-to-date balance sheet. A potential investor or loan provider wants to see that the company is able to keep payments on time. When [...]