Each expense is meticulously recorded, and at the end of the month, the fund is replenished based on the vouchers submitted. The advanced accounting software also includes an approval workflow for petty cash transactions, ensuring compliance and preventing misuse. Without a standardized system for tracking petty cash expenses, reporting can…...

Not sure where to start or which accounting service fits your needs? Our team is ready to learn about your business and guide you to the right solution. Please download CFI’s free income statement template to produce a year-over-year income statement with your own data. Next, analyze the trend in…...

Automotive dealership accounting is often considered one of the most complex systems in the business world. Besides the formal monthly accounting reports, each dealership department maintains its accounts, and managers review the previous day’s transactions daily to identify and promptly address any issues. Floor plan financing is a specialized type…...

Instead of investing upfront to own and warehouse the item, the company waits until the product is purchased. It then buys the item from a third party, such as a wholesale warehouse or manufacturer, and directs that company to ship directly to the customer. In the eyes of the customer,…...

As per international accounting standards, it is no longer amortized or depreciated. Instead, it should be tested for impairment every year, as explained below. However, as per Indian accounting standards, goodwill amalgamation or merger is amortized over its useful life. Since it is difficult to estimate the useful life with…...

Creating journal entries for small business transactions should be like second nature. Read on to get a closer look at recording cash disbursements in your books. While less common, some businesses still use cash for small purchases or petty cash expenses. Proper documentation and reconciliation are essential when dealing with…...