Accounting

Employees are a crucial part of any company or business. Companies employ individuals to work for them and operate their resources. In exchange, those individuals receive funds through payroll payments. Depending on their rank and experience, their remuneration may differ. Usually, both parties set the payment rates through an employment contract. The payroll function within …

Which is Better, Biweekly or Semimonthly Pay? (Here Are the Points You Might Not Know) Read More »

Accountants may come across several transactions where the classification is challenging. One of these instances includes differentiating between assets and expenses. In accounting, assets include resources owned or controlled by an entity. These resources result in the inflow of economic benefits in the future. Usually, assets include inventories, cash, property, plant, equipment, receivables, etc. On …

What is a Betterment in Accounting? Read More »

A gross receipt tax is a tax that applies to the total revenue of a business. It is a state or local tax that is collected in several states in the US. A GRT offers several advantages to tax authorities. However, it also has several practical challenges for tax authorities and taxpayers. Let us discuss …

What is a Gross Receipt Tax? (Explained) Read More »

All of us go through this experience now and then to return a purchased item that is faulty or no longer needed. Customers are protected by law to claim refunds or free repairs for damaged goods in most jurisdictions. However, in many cases, customers can return items without a receipt as well. Let us discuss …

Can You Return Items Without a Receipt? Read More »

Read receipts are notifications that a sender receives when an email or a message has been read by the recipient. It offers some benefits to the sender such as a confirmation of email delivery. It also comes with some limitations such as customer privacy concerns and expectedly increased response time. Let us discuss what is …

What is a Read Receipt? (Explained) Read More »

Companies usually maintain several bank accounts through which they conduct business. These bank accounts may exist in different banks or at the same one. Regardless of that, these accounts enable the receipt and payment of transactions. In some cases, the jurisdiction in which a company operates also requires it to conduct transactions through banks. In …

Importance of Bank Reconciliation in Internal Control Read More »

Companies sell products and services to customers. In most cases, the customer receives those items and accept them. Then, the company sends an invoice which is a payment request. Once the customer processes the invoice, it will repay the supplier. This process works similarly for when companies acquire products or services from suppliers. In some …

What is a Credit Memo in Banking? Read More »

Entities, whether individuals, organizations or businesses, make decisions every day. Usually, the premise of these decisions is straightforward. Mostly, these entities base those decisions on underlying information. This information makes the process straightforward and enables the decision-maker to reach a conclusion. In some instances, the premise of a decision may not be as simple. Sometimes, …

What is Ethical Behavior? (Explanation) Read More »

Companies use accounting software that helps prepare financial statements. However, the process behind the software is similar to that used by manual accounting processes. This process begins with an accounting entry that enters the system. This entry then enters the general ledger. Within the general ledger, companies have various accounts related to different areas. Usually, …

Balance Sheet Vs. Trial Balance: What are the Differences? Read More »