Small Business Accounting- Unearned Revenue
Monday, June 17 2013
In small business accounting, some concepts can be trickier than simply recording assets, liabilities, and transactions. Some companies receive advances in payments before actual services are performed. In accounting, this is called Unearned Revenue. Unearned revenue must be reported in order for companies to comply with GAAP* principles. When the company receives an advance, it
- Published in Latest, Small Business Accounting
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Managerial Accounting-The Sarbanes-Oxley Act
Friday, June 14 2013
Even if managers aren’t actively filling out financial information, it’s important that they have a firm grasp on rules and standards for filling out financial information. Also, understanding financial information itself is critical for managers to make informed decisions. In this post, we will discuss the Sarbanes-Oxley Act and its implications on businesses and managers.
- Published in Latest, Small Business Accounting
Managerial Accounting- Tips for Ethics in Financial Reporting
Thursday, June 13 2013
In recent years, many financial scandals have come to light in the media. Companies such as Enron, WorldCom, and AIG have experienced significant scandals due to unethical and sometimes illegal accounting practices. It is important for companies to prepare financial statements correctly and legally to avoid punishment, but also to have an honest relationship with
- Published in Business, Latest, Small Business Accounting
Small Business Accounting- Cash Versus Accrual Basis Accounting
Wednesday, June 12 2013
There are two types of accounting: accrual and cash. It’s important for a small business to understand the two systems in order to select the correct accounting methods. In this post, we will discuss the differences between cash basis and accrual basis accounting. Accrual basis accounting means that companies record
- Published in Latest, Small Business Accounting