If an improvement increases the useful life of the asset (fancy weather-resistant shingles on a roof, for example), you should decrease the accumulated depreciation account to record the value of the extraordinary repairRead More
Now that we know what to include and why, here’s a typical engagement letter example. If the scope of services or anything else changes during the year, the letter must be reissued. TheyRead More
The Completed Contract Method delays the recognition of revenue and expenses until a construction project is either fully or substantially completed. This method is often used for short-term or small-scale projects where itRead More
Mathematically, book value is the difference between a company’s total assets and total liabilities. The formula to calculate the net book value (NBV) is the purchase cost of the fixed asset (PP&E) subtractedRead More
Through this method, you’ll account for all of your expenses the moment you receive a bill for them. On the same note, you’ll account for any receivables from your patients the moment youRead More
Plus, you can calculate sales tax automatically, customize payment terms and enjoy access to easy-to-understand cash flow insights. It also features a well-laid-out, clutter-free dashboard with individual tabs for sales, purchases, accounting, banking,Read More
The increase to assets would be reflected on the balance sheet. The income statement would see an increase to revenues, changing net income (loss). If one item within the accounting equation is changed,Read More