Category: Bookkeeping

The choice between accrual and deferral depends on various factors such as the size of the business, its industry, regulatory requirements, and the preferences of stakeholders. Financial planners need to carefully consider these factors to choose the most suitable accounting method for their specific situation. In accounting, a deferral refers to the postponement of recognizing…

Open a savings account or open a Certificate of Deposit (see interest rates) and start saving your money. A decrease in the value of a long term asset to an amount that is less than the amount shown under the cost principle. A balance on the right side (credit side) of an account in the…

A contra revenue account is a general ledger account that records deductions from a company’s gross revenue to arrive at net revenue. When financial statements are prepared, these contra accounts offset the gross revenue figures, resulting in a more accurate representation of a company’s actual earnings. Products may arrive damaged, orders might be incorrect, or…

Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting. Using these new technologies can save you time and money, and give you a clearer picture of your earnings. However, it’s important to choose tools that fit your specific needs and work well…

By contrast, AP automation, especially a comprehensive Corpay’s fully managed AP automation solution, offers businesses a powerful way to redefine AP as a hub of efficiency, security, and strategic insight. AP automation solutions strengthen internal controls and ensure regulatory compliance with tools like digital audit trails that record every action on an invoice, from receipt…

Retrospective application offers consistency across periods but can be resource-intensive. Prospective application allows for a smoother transition but may limit the comparability of financial data over time. Regulatory bodies often provide guidance on which method to apply, but accounting corrections companies must also exercise professional judgment. Accounting changes come in various forms, each with unique…