Category: Bookkeeping

This is especially important for any foreigner who plans to establish financial ties in the US by opening US bank accounts for foreigners. Individuals must sign their own form, while an entity’s form must be signed by an officer or representative with authority to act on its behalf. The following are the five types of…

From the perspective of a CFO, managing period costs is about striking a balance between necessary expenditures and cost-saving measures. For instance, advertising expenses, a common type of period cost, can be substantial, but they are crucial for brand recognition and market penetration. A marketing manager, on the other hand, might argue for increased spending…

The IRS Section 280E has become the biggest taxation-related challenge for medical marijuana businesses. For example, you can create specific accounts for cultivation, costs, retail sales, product manufacturing, regulatory fees, and compliance expenses. Failure to comply with these guidelines may result in severe penalties and major legal repercussions, which can range from hefty fines to…

While performing such audits may be somewhat inconvenient for staff, it enables the CEO or manager to get a precise snapshot view of the day-to-day operations in action, and whether or not standards are being met. It’s Accounting for Marketing Agencies complicated for licensees who need to comply with how their particular state tells them…

For example, electricians and plumbers often complete multi-year apprenticeships that combine classroom instruction with hands-on experience. Moreover, the integration of artificial intelligence (AI) and machine learning into various industries is reshaping the landscape of both blue-collar and white-collar jobs. For instance, AI can analyze vast amounts of data to inform business decisions, while also automating…

For example, a skilled tradesperson, such as an electrician or plumber, may take pride in completing a project that directly improves someone’s home or business. This sense of accomplishment can lead to high job satisfaction, as workers see the immediate impact of their efforts. During periods of economic growth, blue-collar jobs often see increased demand,…

Aligning your revenue and expenses during the budget process helps you avoid cash flow issues throughout the year. This may include donations, grants, fundraising events, government funding, and even small affiliate programs through your local grocery store. Again, it’s important to review how these revenue streams have performed in the past and understand how they…

Each receipt should be matched with a corresponding entry in the petty cash log. This step is crucial for ensuring that all expenditures are legitimate and properly documented. If any receipts are missing or incomplete, the responsible employee should be contacted to provide the necessary documentation. This thorough review process not only helps in maintaining…

From establishing a comprehensive petty cash policy to conducting regular audits, we will walk you through every step of the process. Look at your historical data to see how much petty cash you typically use each month. Once you’ve decided on an amount, you’ll need to make a journal entry to record the transfer of…

Deducting capital expenditures from cash flow from operations gives us Free Cash Flow, which is often used to value a business in a discounted cash flow (DCF) model. Operating cash flow is calculated by starting with net income, which comes from the bottom of the income statement. Since the income statement uses accrual-based accounting, it…