Disability Insurance Payments

Disability insurance is funded through the federal Social Security program as well as through states and their own programs. For state disability insurance, employees contribute a very minute sum each week to fund the program. It may be as little …

Tracking Nonprofit Donations

A nonprofit organization’s main source of income is donations. However, revenue may be received as well in exchange for goods and services or from investments. The source of donations varies. They may come from individuals, corporations, foundations, churches and government …

Bookkeeping vs. Accounting

One of the primary purposes of bookkeeping and accounting is to have audited financial statements at the end of accounting periods and the fiscal year. Transactions are recorded. Receipts and detailed records are kept on file.There are some main differences …

Accounting for Bonds

Part of an accountant’s job may be to advise management when there is excess profit. One way to invest extra cash is in bonds. A bond is a loan given to another company that bears interest. Bonds are a short-term …

Declining Balance Methods

Recording depreciation is an important part of accounting for long-term assets. Assets undergo wear and tear and their depreciating value must be tracked. There are three methods to choose from and among those choices are the Declining Balance Methods. The …

Depreciation Methods

Selecting a method for calculating and recording depreciation will determine what is reflected in the accounting ledger. In fact, an accountant may keep one record using a particular method for tax purposes and another record using a different depreciation method …

Reinvesting Profits in Long-Term Securities

An important accounting function is tracking cash flow.This involves the inflow of cash through sales, services and investment interest and the outflow of cash in the form of expenses and other financial activities. Investing excess cash in securities, either short-term …

Managing Company Cash: Determine a Cash Budget

Tracking the use of a company’s cash is important. Most every company provides some form of petty cash to have on hand for minor business expenses. Not only is the accountant responsible to record cash flow but he must also assess …

Reinvesting Profits in Short-Term Securities

It is a well-known practice for a company with excess cash to invest it in short-term or long-term investments as a way of increasing their profit. In fact, Apple has a separate office designated for the reinvestment of their profits …

Uncollectible Receivables

Most businesses usually extend some form of credit to attract customers. It may be a retail store offering to sell their goods on credit cards or a vendor who allows payment for goods sometime after they are delivered. With offering …