Category: Bookkeeping

By leveraging digital invoice capture and automated approval workflows, you can streamline your invoice processing and payment cycles while eliminating the need for manual data entry. Digitizing your invoice management system allows you to capture invoices electronically, automatically extract data from them, and route them for approval without human intervention. With an automated approval workflow,…

This type of business is subject to both corporate taxes and taxes on dividends—a phenomenon referred to as double taxation—and it is also more complicated to run in terms of legal and financial issues. Some business owners might opt to pay themselves a salary instead of an owner’s draw. When it comes to salary, you…

Any money taken from the business account for personal use is referred to in accounting terminology as a drawing. This can be as substantial as a paycheck or as straightforward as lunch that is paid for with your employer’s credit card. The accounting entry typically would be a debit to the drawing account and a…

However, the company has yet to pay the related invoice, so the cash remains under the possession of the company until issued. On the contrary, if the business is more focused on creditworthiness, it may raise more finance and incur interest charges. In another version, the average value of beginning AP and ending AP is…

Direct labor rate variance arise from the difference in actual pay rate of laborers versus what is budgeted. Actual labor costs may differ from budgeted costs due to differences in rate and efficiency. If the total actual cost incurred is less than the total standard cost, the variance is favorable. In this illustration, AH is…