Archive | Bookkeeping

George decides to invest $15,000 of his personal funds into the business’s bank account. Navigating the intricacies of your business’s financial statements can be a complex task — but it doesn’t have to be. From the above we can see that in the event that the liabilities are greater than the assets of the business, […]

Once entered, the general journal provides a chronological record of all non-specialized entries that would otherwise have been recorded in one of the specialty journals. Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system. As business events occur throughout the accounting period, journal […]

However, accountants are brought in when the business needs more strategic advice, especially as it bookkeeping and payroll services relates to taxes and corporate or financial planning. As your business grows, you might wish to hire either a full-time or part-time, in-house or outsourced bookkeeper to organize transactions, payroll, payments to vendors, and other tasks. […]

This type of system is called progressive taxation, which aims at reducing income inequalities in a given country. Tax credits lower your tax bill dollar-for-dollar, but they don’t affect your marginal tax bracket. While you might have the goal of falling into a lower tax bracket, your primary goal should be to get your effective […]

The official receipt is what you give to the buyer reflecting that they have paid you for that product or service. When giving a receipt, it’s common practice for the customer to keep the original and for the business to keep a copy. However, this can vary depending on the industry and the specific transaction. […]

For more complex journal entries, it is best to obtain the advice of the company’s auditors or a CPA. If you fall into the second category, let Bench take bookkeeping off your hands for good. If you use accrual accounting, you’ll need to make adjusting entries to your journals every month. When certain deducting commuting […]

In our experience, the accounting for SaaS (and other cloud computing) arrangements is of increasing importance given their growing prevalence. SaaS accounting considers the recurring revenue generation from subscription-based billing when preparing these company’s financial statements. Since SaaS accounting can be intimidating, most businesses use cloud-based SaaS accounting software to handle their financial reporting and […]

Thus, bigger the difference between Gross Receivables and Net Receivables, bigger the issue with your business’ trade credit and collection policy. Net Accounts Receivable is the total amount that your customers are liable to pay less the money that is doubtful to be collected from such customers. Accounts Receivable Turnover in days represents the average […]

Different industries vary in D/E ratios because some industries may have intensive capital compared to others. This could lead to financial difficulties if the company’s earnings start to decline especially because it has less equity to cushion the blow. There is no universally agreed upon “ideal” D/E ratio, though generally, investors want it to be […]

You don’t have to book an appointment with your accountant to understand the term. We have explained the content of the debt to equity ratio for you below. Investors and lenders use the ratio to evaluate financial stability and risk before providing funding or capital. Industries have varying norms for acceptable debt-to-equity ratios due to […]