It’s the total money generated from these activities before deducting any expenses. Every transaction affects at least two accounts – one gets debited and another credited. Double-entry bookkeeping is a fundamental requirement for recording financial transactions under GAAP (Generally Accepted Accounting Principles), so you can’t record your transactions differently. To help illustrate the types of […]

It’s safe to assume larger companies will typically have more transactions and accompanying GL accounts than smaller ones. Thus, a five-digit numbering system – rather than three or four-digits – gives a large company more room to break out detailed accounts. These could include accounts like COGS, depreciation on fixed assets, sales returns, common stock, […]

The company issuing the preferred stock does not receive a tax advantage, however. Institutional investors and large firms may be enticed to the investment due to its tax advantages. Some preferred stock are convertible, meaning they can be exchanged for a given number of common shares under certain circumstances. Part 2: Your Current Nest Egg […]

In Goodrich Petroleum’s case, if dividends remain unpaid for six quarters, the preferred shareholders become entitled to two seats on the company’s board. One series also increases its dividend rate by 1% per year until all accumulated and unpaid dividends are paid in full. Preferred shareholders always receive dividends and asset payouts before holders of […]

Employee B may simply call their contact in the sales department to have them check on how much the customer has to pay. Employee C might reference the database of past invoices as they know this customer is billed monthly and assumes it’s for the same amount every time. Over the years, there have been […]

Our local bookkeepers provide both onsite bookkeeping and offsite bookkeeping services. Bookkeeping involves the recording, on a regular basis, of a company’s financial transactions. With proper bookkeeping, companies are able to track all information on its books to make key operating, investing, and financing decisions. What is bookkeeping? Companies often outsource the organization of their […]