Categoria: Bookkeeping

If you’re looking for a job, understanding the difference between W2 employees and 1099 employees is key. W2 employment is usually the best option if you’re looking for job security, benefits, and stability. A non-exempt employee can get FLSA benefits and company policies, like working from home and flexible work hours. The FLSA does not limit their working hours, and… Read more →

Lenders and investors perceive borrowers funded primarily with equity (e.g. owners’ equity, outside equity raised, retained earnings) more favorably. The opposite of the above example applies if a company has a D/E ratio that’s too high. In this case, any losses will be compounded down and the company may not be able to service its debt. So, the 3.2% now… Read more →

Thus, shifting revenue out of the income statement means debiting the revenue account for the total amount of revenue recorded in the period, and crediting the income summary account. After closing the revenue accounts, the next step in compiling the document is to close all the expense accounts. Expense accounts are always losses or costs, meaning they have debit balances.… Read more →