Companies have several options for depreciating the value of assets over time, in accordance with GAAP. Most companies use a single depreciation methodology for all of their assets. Thus, the methods used in calculating depreciation are typically industry-specific. This method often is used if an asset is expected to lose greater value or have greater …

Small business owners might manage it via Excel sheets or by hand with a traditional ledger. But, it’s much easier to record, track, and analyze financial results using automated accounting software. The accounting cycle includes many moving parts that build the financial statements you need to track your business performance and file tax returns. It …

MicroStrategy’s equity premium toward bitcoin holdings has expanded materially over the past few months. But I think we’re getting a little bit better at it, and I think we’re starting to understand our unique advantages as time goes on. We are a bitcoin development company in the same way that you might have a real …

Instead of showing clear images of your cash balance, outstanding invoices, and upcoming bills like the QuickBooks Online dash, the desktop version’s dash is a flowing series of connected folders and files. Unless you’re an accountant, the learning curve will likely be a little higher for you than it would with QuickBooks Online. Different software …

We work with a wide range of businesses on a national level and can give you the friendly and expert accounting advice you need. HMRC are four letters that can strike fear into business owner’s hearts. For many, submitting their annual company tax return is stress that they could do without. Fortunately, we are on …

Implementing an organized COA supports the accurate analysis of financial data, which is crucial for sound decision-making and overall business performance. Retained earnings represent the accumulated net income that has not been distributed as dividends to the shareholders. These earnings are retained within the company to be reinvested in the business, finance expansions, or repay …

Companies record revenues and expenses on a quarterly rather than continuous basis, and account balances from one period are not added to those from the next. The balances in the temporary accounts are retained in the income summary account until final closing entries are completed. Once all temporary accounts have been closed, the balance in …

Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Below is the balance sheet for Bank of America Corporation (BAC) for the fiscal year ending in 2020. All of the other options retain the earnings for use within the business, and such investments and …

If you need to make adjustments for more than one period, then you must use a separate adjustment general rules for debits and credits transaction for each period. Make sure that the adjustments are correct by selecting the appropriate reports when finished. This article also explains how to use a liability adjustment to correct an …