What Is Unearned Revenue? A Definition and Examples for Small Businesses
An example of unearned revenue is when a business sells a subscription-based product or service that requires advanced payments. When the customer prepays for the product or service, that income is considered unearned income because the goods and services have not yet been delivered. Unearned revenue (aka deferred revenue) is a liability that gets created […]
9 Essential Steps for Setting Up a Construction Accounting System
Figuring out how to set up QuickBooks for a construction company requires you to determine which QuickBooks is best for construction in general. As tax season approaches, you can either share your books with your accountant, or export those essential documents. QuickBooks Online allows you to send subcontractors a request to add their W-9 forms […]
How Do I File Returns for Back Taxes?
This is to fill in the gaps on Online Accounting all the tax information you have collected so far. The IRS doesn’t really make any distinctions in regard to how many back tax returns you have to file; they much rather you would file and pay them all in a single showing. You may be […]
Debits and Credits Chart
Keeping transactions consistent is crucial for trustworthy financial reporting and analysis. The way banking and accounting view debits and credits differs. But in accounting, a deposit is a debit because it raises an asset. Understanding this difference is crucial for all financial analysis. A liability account that reports amounts received in advance of providing goods […]
Cash Flow Statement: Explanation and Example Bench Accounting
The reconciliation report is used to check the accuracy of the cash from operating activities, and it is similar to the indirect method. The reconciliation report begins by listing the net income and adjusting it for noncash transactions and changes in the balance sheet accounts. The Financial Accounting Standards Board (FASB) recommends that companies use the […]