Category: Bookkeeping

This account will show a decrease in the amount of retained earnings due to the payment of preferred dividends. The amount of preferred dividends declared is debited to the retained earnings account and credited to the preferred dividends payable account on the balance sheet. Let’s take a closer look at...

Either way, let’s say Company XYZ is prepaying for office space for six months in advance, totaling $24,000. Businesses may prepay rent for months in advance to get a discount, or perhaps the landlord requires a prepayment given the renter’s credit. The monthly adjustment for Company ABC would be $12,000...

Accounting likes to be predictable, with the exception of intangible assets and liquid assets. Below are some of the most commonly asked questions regarding the cost principle. The cost principle can be a frustrating concept to absorb. The cost principle is a large part of being compliant, and any good...

Good bookkeeping provides entrepreneurs and small business owners with detailed, accurate, timely records that assist decision-making, taxes, and audits. It’s an essential part Main Advantages of Accounting Services for Startups of good business management and business growth. The bookkeeping process involves keeping track of business transactions and making specific entries....

Every period, a company may pay out dividends from its net income. As the company pays off its AP, it decreases by an equal amount in the cash account. As companies recover accounts receivables, this account decreases, and cash increases by the same amount. Balance sheets, like all financial statements,...

Do you need someone for basic data entry and reconciliations, or are you looking for deeper expertise like financial analysis or industry‑specific bookkeeping? A bookkeeper can categorize expenses, review cash flow patterns, and give owners a clearer picture of their financial health, making it possible to spot trends, reduce waste,...