This includes items you can touch and feel like furniture, coffee cups and books. Most “tangible” property in the U.S. is taxable. Your state’s taxing authority is generally called the “State Department of Revenue,” but it may go by another name. I could have made decisions for my business that would not have turned out […]
Archivos de Categoría: Bookkeeping
Accurately calculating your cost of goods sold is fundamental—it shapes your pricing, profitability, and growth potential. And hoping nothing slipped through the cracks.In most businesses, the finance or accounting team handles COGS. Businesses typically calculate COGS for each accounting period, or may even make regular recalculations for accuracy. There’s an important distinction to note here—COGS […]
After the first year, we apply the depreciation rate to the carrying value (cost minus accumulated depreciation) of the asset at the start of the period. We can incorporate this adjustment using the time factor, which is the number of months the asset is available in an accounting period divided by 12. Another thing to remember […]
Totaling of all debits and credits in the general ledger at the end of a financial period is known as trial balance. When the company receives the cash from the customer, two accounts again change on the company side, the cash account is debited (increased) and the Accounts Receivable account is now decreased (credited). For […]