While cost reduction remains a key focus for merchants, it's essential not to view payments merely as a cost centre. There isn't a one-size-fits-all approach to strike that balance; merchants must optimise based on their unique risk appetite and business objectives. Fortunately, merchants have a variety of tools at their disposal to strike this...
The formula for debit balance in revenue or income accounts is assets - liabilities + capital. This indicates that if revenue account has a credit balance, the amount of credit will be added to capital. Therefore, if there is any increase it will lead to an increase in capital. Today, most bookkeepers and business...
They record incoming and outgoing cash flow on your financial statements, ensuring entries stay aligned. The Debits and Credits Chart below is a quick reference to show the effects of debits and credits on accounts. The chart shows the normal balance of the account type, and the entry which increases or decreases that balance....
Law firms also need to manage cash flow, accounts receivable and accounts payable to be financially stable. Implementing and maintaining accounting systems can also be tricky especially when choosing the right legal accounting software. These challenges highlight the need for a solid accounting framework to navigate the complexities of legal financial management. Can you...
For example, if a company is constructing a new office building, all related costs—such as architectural fees, materials, and labor—are recorded under the CIP account. Once the building is finished, the total cost is transferred to the “Buildings” account, where it begins to depreciate. When the project is complete, transfer the CIP balance...
Accountancy generally refers to the profession or practice of maintaining financial records, auditing accounts, and preparing financial statements. Additionally, accountancy involves the analysis of financial activity using accounting data. If you work as a business manager, you need to know about accountancy. If you become a business manager, you will use specific principles in the...
