Examples of deferred revenues include rent received in advance, subscription fees, and customer deposits. These are revenues that have been earned but not yet received or recorded. An adjusting entry for accrued revenues requires debiting an asset account and crediting a revenue account. The primary objective behind these adjustments is to transition from cash transactions […]

Likewise, managing receivables efficiently ensures customers’ trust while reducing delays in payments. The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may […]

This feature is great for contractors or service providers who need to provide job estimates before securing a contract. One of the biggest upgrades from Self-Employed is the introduction of double-entry bookkeeping. This is a more accurate method of accounting that ensures all transactions are recorded in two places, making it easier to catch errors […]

If the company sells 26,000 units, the accountant can record that as 26M units. The MM abbreviation works whether the entry is in dollars, some other currency or millions of items or customers. Roman numerals are often used in accounting to help abbreviate and designate numbers. For example, the Roman numeral MM is frequently used […]

Review expenses at least monthly to stay organized, catch errors, and optimize your tax deductions. And finally, we’ll explore how doola’s All-in-One Accounting can simplify bookkeeping and take the guesswork out of managing business expenses. Instead of lumping small expenses into general overhead, set up a specific “Miscellaneous Expenses” category in your accounting software. One […]

They are required to report all income earned while residing in Illinois and any Illinois-sourced income received while living elsewhere. Illinois ensures income earned within the state by non-residents and part-year residents is appropriately taxed. Non-residents earning income from Illinois sources, such as wages, rental income, or business income, must law firm chart of accounts […]

In January, there is no revenue recognized because the payment is not received. Instead, the $5,000 is recorded as accounts receivable (an asset) because ABC Consulting is owed that money. In February, when the payment is received, the $5,000 is recorded as revenue, and accounts receivable decreases to $0 while cash increases by $5,000. Cash […]