All accountable companies have to prepare an annual statement at the end of the financial year, to determine their tax obligations, among other things. A balance sheet is created according to an established pattern and on a fixed date in the year. The profit and loss report is the basis for a balance sheet, which is important for companies because it provides information on its status and...What is a balance sheet, and how do you create one?
When it comes to running a business, there are few thigs more daunting and complex than bookkeeping and accounting. This is even more so the case when dealing with multi-national companies that have interests and investors around the globe. For that reason there are generally accepted accounting principles (GAAPs) which act as guidelines for writing and maintaining financial statements. But what...Generally accepted accounting principles (GAAP) – an overview
Given its range of functions and complexities, it is perhaps of no surprise that there are multiple approaches to it. One such approach is single entry accounting. But exactly what is single entry accounting? What are the advantages and disadvantages of it? Who should use it? How does it differ from the double entry approach? This article answers these questions and aims to tell you everything you...Single entry accounting – an introduction
Cash flow statements provide the recipients of quarterly or annual financial reports with an overview of the company’s use of funds. They help investors assess their financial and economic situation. Depending on the company’s focus, preparation of the cash flow statement must comply with the requirements laid out by the FASB and in the IAS 7. In this article, we give you a short introduction into...Cash flow accounting: Cash flow statements easily explained
Accruals play an important role when it comes to accounting. They are expenses or revenues incurred over a period in which no invoice was sent or no money changed hands. By learning more about accruals and how they work, you will be able to keep track of your company’s finances more easily. This article explains how to calculate, report, and reverse accruals in an easy-to-understand way.How to correctly calculate, report, and reverse accruals on the balance sheet
Most firms organize regular company events - business meals aren’t a rarity either. While selecting the menu plays an important role in the organization of such events, it’s just as important, if not more, to properly record all of your meal and entertainment expenses so that you can file for tax deductions.Booking company entertainment expenses
Business meals are a significant part of many businesses day-to-day activities. There are many companies out there that spend a lot of money in order to be able to have a nice setting and atmosphere to conduct meetings with clients. This can be to discuss both current and future projects. However, once the bill comes, there is also the important matter of the entertainment expense receipt. Anyone...Entertainment expenses for accounting and taxes
Writing sales receipts is becoming easier thanks to the numerous templates on offer. Above all, professional software is designed to make accounting as easy as possible. Your sales receipts will be automatically filled out with the necessary information and can be printed straight away. But why do you actually have to issue sales receipts? And which information is mandatory? This article provides...Writing sales receipts with correct templates
You want to fill out your cash book electronically, and need a practical cash book template for it? With 1&1, you can find a free Excel cash book template available for download. You can also learn who must fill out a cash book, which details must be included, and how to fill it out correctly.Cash book template: a useful tool for bookkeeping
With impairment tests, IFRS has created an accounting standard that allows companies to create more accurate balance sheets. They can represent impairments correctly in annual financial statements and minimize falsifications. But when are these impairments tests used and what purpose do they serve? There is also some confusion surrounding the topic of goodwill!Impairment test: what is it and when is it needed?
A solid business growth strategy is paramount for any business owner. This category focuses on all the aspects that follow the establishment of a company; from business strategy and growth, to recruitment, bookkeeping, and taxes.