Category: Bookkeeping

A credit is not a normal balance for what accounts?

January 08, 2024

On the other hand, the retail store operates on a credit basis or owes money to its suppliers. Therefore, the accounts payable account, which represents the liability, is credited. By debiting inventory and crediting accounts payable, the transaction maintains balance. A debit entry increases an asset account’s balance but decreases a liability, equity, or revenue […]

Trial Balance: Understanding Its Fundamentals and Importance in Accounting

November 13, 2023

For example, if a transaction is not recorded at all, the trial balance will still balance because the total debits and credits will not be affected. Similarly, if a transaction is recorded in the wrong account but the correct amount is debited and credited, the trial balance will still balance. Therefore, while a balanced trial […]

What Is Small Business Accounting? A Beginners Guide

August 30, 2022

As an accountant, you may be responsible for tax planning, financial statement preparation, and auditing. On the other hand, bookkeepers are typically only responsible for recording transactions and keeping track of financial data. This method records both invoices and bills even if they haven’t been paid yet. This is a highly recommended method because it […]

Accept Credit Cards Payments Online with Wave Credit Card Processing

July 14, 2022

Note that you will pay credit card processing fees on all applicable transactions. Wave is primarily an accounting software, but it also offers free invoicing, recurring billing, and online payments processing tools. It does not charge monthly fees and offers a simple flat rate to accept credit card, digital wallet, and direct-to-bank (ACH/echeck) payments. Another […]

What is a flexible budget variance?

January 18, 2021

However, the variable standard cost per unit is the same per unit for each level of production, but the total variable costs will change. Flexible budget is budget typically in the form of an income statement that is adjustable to any level of activity such as units produced or units sold. In a simple flexible […]

Bookkeeping for Startups in 2024: Costs, Services and Checklist

January 13, 2021

Our team loves working with startup companies, not only that, but Kruze cares more! We’ve got the experience to help you make critical financial decisions. We have former VCs on staff to help prepare you for your next funding round, and former IRS agents on hand to assist you as you think through the tax […]

What Is an Income Statement? Financial Statement for Business

January 30, 2020

Debt ratios, such as the current ratio, which can be calculated from the information provided in financial statements, let analysts assess a company’s ability to handle outstanding debt. Major capital expenditures can be used in evaluating a company’s current financial condition and can telegraph the potential for growth. The income statement shows the financial health […]