The direct write off method offers a way to deal with this for accounting purposes, but it comes with some pros and cons. It’s important to note that unpaid invoices are a part of the accounts receivable balance. An unpaid invoice is considered an asset… Read More »Direct write off method definition
Don’t use your personal bank account to receive, hold or disburse money for your nonprofit. Make sure all of your nonprofit’s transactions go through a dedicated bank account. Ask your bank whether they offer business checking accounts tailored to nonprofits. Our intuitive software automates the… Read More »Nonprofit Accounting: An Overview & How to Get Started
For instance, liabilities are sectioned off into current and other liabilities. Current liabilities include any obligations that are due immediately—at least within the current accounting period. The other obligations include long-term liabilities (which are also called noncurrent liabilities), such as long-term debt, other obligations, interest… Read More »Reviewing Liabilities on the Balance Sheet
Interchangeable parts may be ordered from different suppliers, further complicating the tracking of assemblies and subassemblies. Different materials may have different units of measure – meters of sheet metal, numbers of printed circuit boards, kilograms of paint, etc.. The cherry on top of this inventory… Read More »Does Inventory Go On The Income Statement?
Knowing when is the right time to outsource a CFO is different for each firm. Suppose you are finding yourself asking your bookkeeper or accountant questions that they can’t answer or you are having a hard time understanding the advice of your tax preparer. In… Read More »Accounting for Advertising Agencies Revenue Recognition
A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account. Things that are resources owned by a company and which have future economic value that can be… Read More »T Accounts Examples in Accounting
When a corporation issues common stock at par value, the amount of cash or non-cash assets received equal to the value of the common stock. This means that the outstanding value of common stock and the asset received are at the same value. In order… Read More »Conversion Premium Formula Example
Only if you wish to enjoy tax and other nonprofit benefits as a registered 501(c)(4) must you apply. However, you must notify the IRS of your intent to run a 501(c)(4) nonprofit using Form 8976, which is more affordable than applying for 501(c)(4) status. A… Read More »Types of Organizations Exempt under Section 501c4 Internal Revenue Service