Category: Bookkeeping

It is the side of the account – debit or credit – where an increase in the account is recorded. Accounts Payable is a liability account, and thus its normal balance is a credit. When a company purchases goods or services on credit, it which set of accounts below would have a normal debit balance?…

For example, optical character recognition can read printed text, and natural language processing can map numbers from invoices to fields in business systems. Machine vision algorithms could perform tasks like estimating insurance damages. AI and machine learning algorithms can automate other types of decisions a bot might have to make. To simply define, business process…

An accounting consultant is a seasoned professional who offers expert advice to organizations regarding the management and organization of their financial systems. Beyond the day-to-day operations, accountants also assist in strategic financial planning. They analyze financial data to forecast trends, identify opportunities for increased profitability, and recommend measures to reduce costs. Ask Any Financial Question…

No matter how long you’ve been in business, odds are you’ve heard of (or even used) QuickBooks Online. While it’s true that QuickBooks Online does have invoicing tools, it isn’t actually invoicing software. It is full accounting software that comes loaded with features you won’t find in invoicing software — features you might not even need. paypal…

In invoice factoring, suppliers might have to pay back the factoring company. Still, suppliers can have peace of mind knowing they don’t have to pay the money back. In contrast, an invoice-factoring company usually takes over credit control. Invoice financing, on the other hand, is a better option for businesses that want to maintain control…

Then determine how they’ll receive this time, either upfront or on an accrual basis. Next, calculate their vacation accrual rate by dividing their total vacation hours per year by the total number of hours they can work per year. In this article, “How To Calculate Vacation Pay For Hourly Employees,” you’ll discover the steps needed…

A write-off is an extreme version of a write-down, where the book value of an asset is reduced below its fair market value. For example, damaged equipment may be written down to a lower value if it is still partially usable, and debt may be written down if the borrower is only able to repay…

Pilot is not a public accounting firm and does not provide services that would require a license to practice public accountancy. Regular reviews and adjustments based on comprehensive data analysis can significantly aid in maintaining healthy profit margins. Schedule regular reviews of your allowance and discount policies so they remain competitive and relevant to your…

Conversely, liabilities and revenue accounts have credit or right balances. A debit recorded in a revenue account would decrease the revenue account. Debit notes are a form of proof that one business has created a legitimate debit entry in the course of dealing with another business (B2B). This might occur when a purchaser returns materials to…

If contra assets appear in the credit column, record contra liabilities on side. A contra account is a general ledger account that offsets the balance of a corresponding account with which it’s paired. If you debit the contra account, ensure that you offset the related account with a credit balance. In essence, contra accounts allow…