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With many aspects of finance and accounting fitting the bill as transactional and/or rules-based, such jobs lend themselves to outsourcing and, in turn, ease the pressure on small and medium-sized businesses. However, they usually offer some “assurances” that solo bookkeepers can’t. And, in the event that someone handling your books has to take a leave [...]

Payroll co-sourcing is a type of payroll outsourcing in which a third-party payroll provider and employees of the business share payroll processing responsibilities. That way, a small business is getting the best of both worlds, allowing them to selectively decide what aspects of payroll they do themselves and which they’d rather have done by the [...]

For example, you may have estimated certain invoices that are later solidified with an actual number. Though often confused for each finance panel weighs uses for arpa funding other, there are key differences between bookkeeping and accounting. At its core, bookkeeping is about recording financial data, while accounting is about interpreting financial data. You have [...]

Comprehensive income excludes owner-caused changes in equity, such as the sale of stock or purchase of Treasury shares. Income excluded from the income statement is reported under "accumulated other comprehensive income" of the shareholders' equity section. A smaller business with relatively simple operations may not have engaged in any of the transactions that normally appear [...]

To account for accrued revenues, an adjusting entry is made to recognize the income in the period it was earned, rather than when cash is received. This involves debiting an asset account, such as Accounts Receivable, and crediting a revenue account. By doing so, the financial statements reflect the true revenue generated during the period, [...]

After adjusting all the above items, you'll end up with the adjusted balance as per the cash book, which must match the balance as per the passbook. The bank statement and the company’s records now both show a $6,975 balance. Next, prepare the business records, which can be maintained on a software tool or manually [...]

The 10-column worksheet is an all-in-one spreadsheet showing the transition of account information from the trial balance through the financial statements. Accountants use the 10-column worksheet to help calculate end-of-period adjustments. Using a 10-column worksheet is an optional step companies may use in their accounting process. The adjusting entries are shown in a separate column, [...]

We’re not just keeping your financials organized, but also taking the extra steps to understanding and interpreting your financials. Shortly after you sign up, we’ll give you a call to learn more about your business and bookkeeping needs. On this call, we’ll connect your accounts to Bench, and gather any extra documentation we need to [...]

If you'd prefer not to do the math manually, you can use the compound interest calculator at the top of our page. Simplyenter your principal amount, interest rate, compounding frequency and the time period. You can also include regular deposits or withdrawals to see how they impact the future value. In reality, investment returns will [...]

In most cases, this is the correct entry to book, however, in certain transactions we are paying upfront for the right to use an asset or receive a service over a defined period of time. Under the cash basis an organization would immediately record the full amount of the purchase of a good or service [...]