Category: <span>Bookkeeping</span>

The trial balance includes columns with total debit and total credit transactions at the bottom of the report. For every transaction, both sides of this equation must have an equal net effect. Below are some examples of transactions and how they affect the accounting equation. Our Accounting Equation Cheat Sheet provides eight transactions to illustrate...

The margin of safety cushions the investor from an inaccurate market downturn. Before an investor buys a stock at an undervalued price, it is important to determine the intrinsic value of a stock. Such an analysis can be done by calculating estimates based on the company’s historical growth trends and future projections that may affect...

It is essential for you to review your supplier contracts on a regular basis as it will help you to prevent fraudulent billing practices, whether due to overpayment or duplicate payments. Figure 2 below shows one example of such a purchase worth one thousand dollars. It gets a supply of screws worth one thousand dollars...

Once you identify areas where efficiency can be improved, using a FreeAgent as a digital tool becomes a lot easier to justify. In 2019, MTD for VAT became mandatory for VAT-registered businesses with a turnover above £85,000, which then extended to all VAT-registered businesses, regardless of turnover, from 2022. After the quarterly updates, you’ll need...

Once you identify areas where efficiency can be improved, using a FreeAgent as a digital tool becomes a lot easier to justify. In 2019, MTD for VAT became mandatory for VAT-registered businesses with a turnover above £85,000, which then extended to all VAT-registered businesses, regardless of turnover, from 2022. After the quarterly updates, you’ll need...