Category: Bookkeeping

As we saw in the car example, this account tracks the total depreciation of an asset over its useful life. Net book value is the amount you get when you subtract a contra account balance from its parent account. For example, if equipment costs $50,000 and accumulated depreciation totals $20,000, the net book value equals…

If you’re an employee, you can usually access pay stubs via email or through your company’s payroll portal if they have one. Pay stubs may still be calculated and written by hand in some small businesses. A pay stub details an employee’s earnings, deductions, and net pay at the end of the pay period. The…

From cash flow forecasting to mergers and acquisitions in the legal industry, our law firm CPAs are here to serve all your financial needs. We know how to tailor strong financial strategies for law firms of all sizes and across multiple locations. Knowing that professionals handle your bookkeeping tasks gives you peace of mind. Bookkeeping…

Thus, understanding and leveraging the power of accounting is essential for any organization seeking long-term success and sustainability. Beyond its basic functions, accounting significantly impacts business operations by enhancing efficiency and risk management. Effective accounting systems streamline operations through automated processes, reducing human error and increasing productivity. Additionally, accounting practices play a pivotal role in…

While leverage can enhance cash flow, it can also result in higher interest expenses that reduce Levered Free Cash Flow. For instance, a property might generate high operational cash flow, but if its interest expenses are also high due to excessive leverage, its Levered Free Cash Flow could be lower than its Unlevered Free Cash…

On the other hand, credits would reduce expenses (not very common) – this could happen if you return supplies to a vendor and get a credit (reducing the expense). This is the owner’s claim on the business – basically, what’s left after you subtract liabilities from assets. This happens when you pay dividends to yourself…

Such a perspective is based on the idea that contracting parties face asymmetric payoffs from certain contracts – such as executive compensation and debt. As a result, the payoffs lead to timelier financial reporting that can potentially impact the contracting parties. The general concept is to factor in the worst-case scenario of a firm’s financial…

All the stakeholders take information from the financial statements, and IND AS ensures the reliability of financial statements. It’s a celebration of how robust financial practices shape business credibility. For Ind AS 109/32, companies need strong valuation and hedge accounting. Over the past decade, Indian enterprises have had to rethink accounting treatments — from revenue…

If a law firm doesn’t do this right, they could get fined or even lose the right to work as lawyers. Yet, beneath this historic run of rate increases, warning signs are beginning https://www.yuks.co/law/the-primary-aspects-of-bookkeeping-for-law-firms/ to emerge. Indeed, clients are becoming more cost-conscious, shifting work to lower-cost legal providers, and financial red flags are starting to…

Most corporations are taxable entities, and their income is subject to taxation. This “income tax” is problematic as it oftentimes produces double taxation. This effect occurs when shareholders receive cash dividends that they must include in their own calculation of taxable income. Thus, a dollar earned at the corporate level is reduced by corporate income taxes;…