If you posta journal entry into a prior year, the retained earnings balance isadjusted for the effect on the income and expense accounts. When youfinalize the activity for an accounting period, close the period toprevent the entry or posting of additional journal entries. If some or all of the topside…...

In addition, a well-diversified investment portfolio is critical to managing risk. Marketable securities provide a valuable component in achieving diversification. By holding a mix of stocks, bonds, and money market instruments, businesses can spread their investments across different asset classes. Corporations and institutional investors must also consider taxation of dividends…...

Conversely, the perpetual inventory system maintains a continuous, real-time record of inventory transactions. When applying the weighted average method under this system, the average cost is recalculated after each purchase. This means that the weighted average cost per unit is updated frequently, reflecting the most recent purchase costs. When a…...

For example, a business borrows $50,000 at an interest rate of 5 percent per year, with a schedule to pay the loan amount back in 60 monthly installments. The company should also disclose pertinent information for the amounts owed on the notes. This will include the interest rates, maturity dates,…...

FIFO is straightforward and intuitive, making it popular as an accounting method and useful for investors and business owners trying to assess a company’s profits. It’s also an accurate system for ensuring that inventory value reflects the market value of products. This one-time revenue boost, spread over the first five…...

Cash inflows occur when these assets are sold, while cash outflows happen during their purchase. For example, selling equipment for $8,000 results in an inflow of that amount. Understanding these cash flows is crucial for analyzing a company's investment decisions and overall financial health. The acquisition or sale of long-term…...

While both are technically multi-family units, there is a significant difference in scale, cost, building materials, and engineering needs. Buildertrend has kept its plan offerings simple by offering only three plans. The Essential plan costs $499 per month, the Advanced plan costs $799 per month, and the Complete plan jumps…...

Alternatively, companies can use APIs for custom integration. Businesses ready to scale up may consider taking a platform approach to support significant long-term growth and maturity. Visit your dashboard or use your invoicing or accounting features, and click the peach “Upgrade now” button. Learn more about changing subscription periods and…...

Maintaining organized records helps businesses understand cash flow, expenses, and profitability, ultimately supporting growth and financial stability. Outsourcing bookkeeping saves you valuable time that can be redirected toward core business operations. Managing financial records in-house often takes time virtual accountant away from your primary business activities, which can stunt growth.…...

Unlike registered bonds, where ownership transfers require formal processes, documentation, and sometimes approval, bearer bonds can be transferred with minimal effort. This made them particularly attractive for transactions that demanded discretion and efficiency. The European Union followed a similar trajectory, gradually phasing out bearer bonds due to tax evasion and…...