Bookkeeping

Value added tax is generally not treated as part of cost of goods sold if it may be used as an input credit or is otherwise recoverable from the taxing authority. If he keeps track of inventory, his profit in 2008 is $50, and his profit in 2009 is $110,... Continue reading

A sinking fund is a separate account that is used to accumulate funds for the repayment of the bond principal at maturity or before maturity through periodic purchases or retirements of a portion of the bonds. To lessen its risk of being short on cash 10 years from now, the... Continue reading

Plant assets are the foundation of operational efficiency and scalability. This approach aligns with modern sustainable asset management practices. Disposal isn’t just about accounting; it’s also about sustainability. Proper disposal ensures compliance with environmental regulations and maximises residual value. For instance, maintaining a production line minimises the risk of unexpected... Continue reading

By providing a systematic approach to adjusting entries, reversing entries support the clarity and consistency of financial reporting. For instance, if an expense was accrued in the previous period and the bill is paid in the current period, failing to reverse the initial entry could lead to the expense being... Continue reading

These include long-term loans and bonds payable, which represent the amortized amount of bonds issued by the company. In addition to tangible assets, long-term assets also encompass intangible assets like patents, licenses, and secret formulas. Cash appears on the first line of the balance sheet and includes all non-restricted bank... Continue reading

Integrating with payroll, inventory, and other tools can save time and money. It lets you track finances in real-time, giving you insights for better decisions. They have the skills and experience needed for accurate financial reports. Houston Business Journal ranks Melton & Melton as the 14th largest accounting firm in... Continue reading