Category Archives: Bookkeeping

What Is The Biggest Advantage Of Electronic Bookkeeping?

No matter how seasoned a bookkeeper is, a minor mistake on the keyboard or calculator can snowball into huge miscalculations. In addition to automatic data entry, you can incorporate your bank into your bookkeeping system, so the deposits and withdrawals are immediately recorded. If you get your data from other channels, https://www.bookstime.com/ like ecommerce sites […]

How to calculate the payback period Definition & Formula

Thus, the averaging method reveals a payback of 2.5 years, while the subtraction method shows a payback of 4.0 years. The other project would have a payback period of 4.25 years but would generate higher returns on investment than the first project. However, based solely on the payback period, the firm would select the first […]

Depreciation Expense Formula + Calculation Tutorial

The assumption behind accelerated depreciation is that the fixed asset drops more of its value in the earlier stages of its lifecycle, allowing for more deductions earlier on. The depreciation expense, despite being a non-cash item, will be recognized how to calculate depreciation expense and embedded within either the cost of goods sold (COGS) or […]

Depreciation Expense Formula + Calculation Tutorial

The assumption behind accelerated depreciation is that the fixed asset drops more of its value in the earlier stages of its lifecycle, allowing for more deductions earlier on. The depreciation expense, despite being a non-cash item, will be recognized how to calculate depreciation expense and embedded within either the cost of goods sold (COGS) or […]

Bank Reconciliation Definition & Example of Bank Reconciliation

After careful investigation, ABC Holding found that a vendor’s check for $20,000 hadn’t been presented to the bank. It also missed two $25 fees for service charges and non-sufficient funds (NSF) checks during the month. Bank reconciliation statements compare transactions from financial records with those on a bank statement. Where there are discrepancies, companies can […]