Accounting
Online Accounting Systems
Online accounting systems are typically based on double-entry bookkeeping, but other bookkeeping methods also exist in the market. This article reviews these alternatives to help users understand the suitability of different systems.
Can I record /expense purchases into an inventory account if I am a cash basis business
Under the cash basis, if an enterprise over-purchases to obtain bulk discounts, can the purchase cost be included in inventory and expensed over time as actually used? Based on tax rules and practical conventions, this article analyzes the limitations of inventory treatment under the cash basis and feasible alternatives, helping enterprises improve the accuracy of expense matching while remaining compliant.
Deferred Property Tax
A financial professional processing annual property tax ($12,000, paid in three installments) in Sage 300 debited 'Accrued Property Tax' (G/L 2450) and credited 'Accounts Payable' (G/L 2100) for each of the three invoices, resulting in a debit balance in account 2450, inconsistent with the credit balance expected for a liability. The article discusses why the expense cannot be directly recorded to an expense account, whether the deferred amount should be transferred monthly to property tax expense, and seeks peer advice.
How to maintain employment of records?
Employment records are the foundation of human resource management in small and micro enterprises and a crucial aspect of legal compliance. This article focuses on the core issue of 'how to maintain employment records,' outlining record content, storage methods, and update mechanisms to help enterprises reduce employment risks.
What are EOR services?
An Employer of Record (EOR) is an alternative payroll solution provided by HR or staffing agencies. Based on industry-standard definitions, this article explains the basic concept of EOR, its service providers, and its positioning in employment management, while reminding readers to note its differences from formal employment relationships.
Donation of fully depreciated computers
When a company donates computers that have been fully depreciated, it typically debits accumulated depreciation and credits computer equipment. However, if measured at fair value, should donation expenses and asset disposal gains be recognized simultaneously? This article analyzes the related journal entries and their impact on the indirect method adjustments in the cash flow statement.
Revenue Recognition
To obtain a bank loan, "Cutting Edge" magazine plans to expand circulation through promotional activities to improve its financial ratios. As the chief financial officer, it is necessary to evaluate the compliance and reasonableness of this plan in terms of revenue recognition, return estimates, accounting for free gifts, and impacts on financial indicators.
What are the journal entries for an inter-company loan?
When loans and excess repayments occur between related companies, it is necessary to distinguish between principal and interest or capital returns. Based on a specific case (loan of 100,000, repayment of 150,000), this article explains the debit and credit entries and the handling principles for the 50,000 premium.
What is ‘Proformative?’
Proformative is an online community and resource platform for finance professionals. Based on official information, this article outlines its basic concept, founding purpose, and reasons for user participation. All facts retain their original wording without additional inference.