Categorie: Bookkeeping

Any remaining prepaid portion of the premium could be refunded to the business if the policy is cancelled before the period covered by those premiums expires. But wait—what if you decide to be extra cautious and prepay for a period longer than a year? In that case, the portion of prepaid insurance not used within…

This income is recognized on the income statement through the work in progress report. Even so, the completed contract method should be considered for small contractors alongside retained earnings the cash method. It is also the preferred method for C Corporation taxpayers as these entities are not subject to AMT. Other types of construction contracts…

The proper recording of consignment transactions helps in obtaining a precise cost of goods sold (COGS) figure and an accurate assessment of the inventory value. The use of advanced inventory management software plays a pivotal role in streamlining consignment inventory practices. Such software can provide real-time data, forecast demand, and generate actionable insights to help…