Category: Bookkeeping

When a business incurs an expense or acquires an asset, it is recorded as a debit in the appropriate account. On the other hand, when accounting principles definition a business receives income or reduces a liability, it is recorded as a credit. In this way, every transaction has a corresponding debit and a credit of… Continue reading Debits and Credits in Accounting: With Journal Entry Examples

By tracking expenses, managing cash flow, and leveraging technology, you can navigate the unique challenges of the industry with confidence. Whether you’re just starting or looking to refine your processes, a well-structured bookkeeping system is the key to sustained profitability and growth. Construction accounting is more than just tracking expenses and revenues; it’s about managing… Continue reading The Emerging Contractors Guide to Construction Bookkeeping

But, of course, not we can do all buying and selling transactions in cash. Therefore, businesses need to use sales and purchases journals. This unique shopping journal and sales journal makes it easy for us to enter and create financial reports. So it is necessary to record carefully, accurately, correctly and adequately. But where cash… Continue reading How to Record a Sales Journal Entry with Examples

Correcting the prior period financial statements through a Big R restatement is referred to as a “restatement” of prior period financial statements. Beyond technical adjustments, these changes carry weight in the eyes of investors, creditors, and analysts who rely on financial statements to evaluate a company’s performance and stability. A restatement, particularly if it involves… Continue reading The 7 most common accounting errors with examples and how to prevent them