A parent-child account is a chart of accounts structure whereby several sub accounts feed a cumulative value to the parent. The information is based on function or location. Parent-child structures are found with both balance sheet and income statement accounts.
The Internal Revenue Service authorizes two different methods to deduct expenses for vehicle operations. The most commonly used method in small business is the mileage reimbursement method explained in Lesson 61. The second method is the actual cost of vehicle operations which is explained and illustrated here.
Petty cash is cash kept in the office in a lockbox or with staff for instant and emergency purposes. It is actual cash and not checks. There is a process to keep track of purchases paid with petty cash and to refill the depleted amounts of cash.
One of the best parts of being a bookkeeper is seeing employees smile when they utilize employee benefits. There are a multitude of different employee benefits out there including: 1) Health Insurance, 2) Retirement, 3) Life Insurance, 4) Dental Care, 5) Vision Care, 6) Cancer Insurance, 7) Disability Insurance and 8) Child Care.
When one account is fed information from several sources based on function or location, this account is referred to as a ‘Parent’ account. The sub accounts are called ‘Child’ accounts.
