In essence, the concept of a transposition error is used to enhance accuracy in data recording, financial reporting, and overall financial management of a company. A transposition error in the context of business and finance is a significant concern because it pertains to the inadvertent swapping of numbers during data or financial information entry. […]

What is a Fiscal Year? Robinhood

A fiscal year is identified by the year in which the fiscal year ends. For example, the fiscal year starting July 1, 2020 and ending June 30, 2021 is referred to as “FY21.” Sometimes a fiscal year is referred to with both years – FY20/21. If your business is a partnership, S corporation, or personal […]

Your Guide to Business Codes for Income Taxes Updated for 2023 + Printable Guide

If you own a partnership or LLC, you must complete an IRS Form 1065. Return of Partnership, IRS Form 1065 is how you’ll report your business finances to the IRS. Any changes in the balance sheet over the reporting period should be consistent with the information you provide about income and capital accounts on Schedules […]

Outsource Bookkeeping: 6 Benefits, Types & Process

Whatever it would be, you need to be clear on what you do personally, what you’re in-house staff is responsible for and what you want someone else to do. We believe, when outsourcing bookkeeping and accounting services, the quality of performance and efficiency must be the top priority. Moreover, accounting and bookkeeping service providers are […]

Payroll Outsourcing In 2023: The Ultimate Guide

Correcting any of these factors after submitting payroll can require a costly fix or a steep penalty. Even seasoned HR pros could lose days getting the process right manually. Outsourcing payroll, however, helps organizations ensure their compensation is accurate and compliant without drowning HR. Additionally, some companies are subject to tax penalties due to mismanaged […]

Rental Property Accounting 101: What Landlords Should Know

It even helps you optimize your portfolio’s asset allocation and shows you where you can save on fees. Solid bookkeeping for property management not only keeps you in the black, but it also keeps your business compliant and reduces the risk of liability. Still, knowledge is only one piece of the equation—you also need to […]

Where does bond sinking fund go on balance sheet?

On the other hand, an emergency fund is set aside for an event that is not known but can happen anytime. For example, one keeps a certain amount as an emergency fund that can be spent on a car accident, which is something that can never be predicted. Harold Averkamp (CPA, MBA) has worked as […]

Daily Compound Interest Calculator Free Online Finance Calculator

Compounding can help fulfill your long-term savings and investment goals, especially if you have time to let it work its magic over years or decades. Start saving with some of our favorite savings accounts or IRA providers. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory […]

Accumulated Depreciation Explained

Accumulated depreciation takes into consideration the total amount of depreciation of an asset from the point that it started being used. It is what is known as a contra account; in this case, an asset whose natural balance is a credit, as it offsets the negative value balance (debit) of the asset account it is […]

Which accounts normally have debit balances?

Debits and credits are used in each journal entry, and they determine where a particular dollar amount is posted in the entry. Your bookkeeper or accountant should know the types of accounts your business uses and how to calculate each of their debits and credits. This is a contra asset account used to record the […]