Petty cash funds are useful alternatives to writing checks or using your business credit card to cover small expenses. Petty cash funds are used to purchase items for your business, reimburse employees who purchased business items, or to make change. A designated employee, the petty cash custodian, accounts for your business’s use of petty cash. …
Journalizing Petty Cash Transactions Financial Accounting Read More »
One of the cornerstones of the Trump administration’s economic policy is the revival and reshoring of the manufacturing sector. As of 2024, manufacturing contributed $2.65 trillion to the US economy, provided close to 13 million jobs, and composed 10.3 percent of the country’s GDP. Discover what a production management system is, its importance, functions,… Grow …
Production Costs vs Manufacturing Costs: What’s the Difference? Read More »
For instance, creating marketing materials in-house may save money short-term but cost more in productivity compared to outsourcing. Fixed overhead items like rent, insurance, and long-term contracts are often assumed to be unchangeable. However, proactive renegotiation can yield cost savings, especially in times of overhead cost examples economic change or business restructuring. Some businesses operate …
Setting aside a portion of the budget (typically 5-10%) as a reserve will help your organization handle unexpected challenges like sudden drops in donations, emergency repairs, or economic downturns. A common mistake is prioritizing program spending without setting aside emergency funds for unexpected challenges. While variations in funding may be beyond your control, make sure …
Nonprofit Budgeting: Step-by-Step Guide + Free Template Read More »
As you can see, the amount of interest you pay increases each month—along with your loan balance (known as the principal). It made sense for borrowers who got paid seasonally or only got paid after completing large projects, who may not have had the money to make the full payment in a given month. It …
Negative Amortization Loan What Is It, Example & Benefits Read More »
If you want to continue learning more about recovery audit check out our other resources found below. To manage these processes and ensure you’re hitting targets, utilize resources like the Financial Audit Preparation Checklist. Greene advocates for a “separation of duties” policy income summary so that one person does not have complete responsibility for all …
Duplicate Payments AP Recovery Audit Software Supplier Risk Management Read More »
By monitoring their assets, liabilities, and equity, new businesses can make informed decisions about how to allocate their resources and grow their business. The accounting equation is especially important for corporations, as it helps them to keep track of their financial position and make informed decisions. In a corporation, the equity component of the accounting …
Accounting Equation: What It Is and How You Calculate It Read More »
Therefore, if you lease property from someone to use in your trade or business or for the production of income, generally you cannot depreciate its cost because you do not retain the incidents of ownership. You can, however, depreciate any capital improvements you make to the property. See How Do You Treat Repairs and Improvements, …
Chart of Accounts Setup for a Real Estate Management Company Read More »
Common examples include charitable organizations, churches and religious organizations, social advocacy groups, and trade organizations. 501(c) is a subsection of the United States Internal Revenue Code (IRC) that confers tax-exempt status on nonprofit organizations. Specifically, it identifies which nonprofit organizations are exempt from paying federal income tax. A nonprofit operates for the betterment of the …
What is a 501c3? Top Articles for Nonprofits on 501c3s Read More »
Did you know that FreshBooks offers time-saving bookkeeping software tailored to the needs of small business owners? If you want to simplify your business, peek at our bookkeeping solutions and learn how to generate net cash flow reports on the fly and prepare for tax season in a snap. This not only reduces taxable income …
Real Estate Bookkeeping: Complete Guide for Agents & Investors Read More »
