Tag: Accounting
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Bookkeeping – Retail Accounting with Item Tracking (Lesson 76)
The retail business is interested in what sells well, not how well something performs against an estimate (project accounting). The retail business uses a different type of accounting to analyze financial performance.
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Bookkeeping – Completed Contract Accounting (Lesson 75)
A second and easier method of accounting with project accounting (construction) is the completed contract method. This method does not utilize an engineering or detailed production schedule (chart) like the percentage of completion method. It works well with any duration for project timelines.
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Bookkeeping – Percentage of Completion Method (Lesson 74)
In project accounting there are two different methods of accounting used. The first is the completed contract method which is explained in more detail in Lesson 75. The second and the focus of this lesson is the percentage of completion method of accounting. This method is an advanced skill for accountants and requires knowledge of its proper…
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Bookkeeping – Phase Costing (Lesson 73)
Phase costing takes accounting to the next level. Phase accounting (costing and accounting are interchangeable at this level of detail) can only be used with job costing. It is designed to break a job down into distinct functions (stages) for analysis. It is a tool to identify discrepancies from estimates.
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Bookkeeping – Project (Job) Costing (Lesson 72)
Another tool used by accountants to evaluate financial performance is project costing. It is also referred to as contract or job costing. Job costing focuses on a specific long-term project customarily associated with a contract signed with a customer.
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Bookkeeping – Departmental Accounting (Lesson 71)
One of the goals of accounting is to report to management performance results, specifically financial performance. Since most businesses sell more than one product or render more than one service, management is interested in understanding the performance of the respective products or service. To successfully report this information, the accountant uses departmental accounting to divide the products or…
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Bookkeeping – Advanced Skillsets (Lesson 70)
The next section of bookkeeping (advanced skill sets) introduces the bookkeeper to the different organizational methods and explains why certain kinds of transactions are handled differently than standard entry practices.
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Bookkeeping – Closing the Books (Lesson 69)
The closing process is designed to finalize the financial information for that period of time. It involves correction of errors, posting omissions and confirming balances of accounts.
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Bookkeeping – Trial Balance Advanced Concepts (Lesson 68)
The trial balance is a special report used by accountants and bookkeepers. It is NOT a management nor a financial report. Its primary purpose is verification of account balances and compliance to the dual entry system (debits equal credits). It is generally utilized as the first step in the closing process for interim and annual reporting.
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Bookkeeping – Adjusting Journal Entries (Lesson 67)
One of the many tasks for bookkeeper in their daily operations is reconciling accounts including bank accounts, accounts receivable, accounts payable and many others. Invariably, the balances are off and need adjusting. To reset or balance the account the bookkeeper must use an adjusting journal entry.