Cash Over and Short

Money is at the heart of all businesses. However, it is often difficult to effectively manage that money, especially if you take money from customers and give them change. This can lead to several problems, not least of all a cash over and short issue. A cash-over and short account Read more…

Contra Asset Account

Contra asset accounts are, as the name implies, accounts that are contrary to popular belief. Contra asset accounts have a credit balance as compared to a debit balance that most other types of accounts have. Before we start talking about the finer details, it’s important to know what is a Read more…

Control Account

What is a Control Account? A control account in accounting is defined as a summary-level account in the general ledger. The account contains the sum total of individual transactions from subsidiary ledger accounts. Control accounts are typically used to summarize the accounts payable and accounts receivable ledgers. Those ledgers usually Read more…

General Ledger Account

Your accountants need to process and record several business transactions in your financial books of accounts according to a system known as double-entry bookkeeping. This means each transaction is recorded in two accounts when written into the books. One account decreases as the other increases. This system helps you track Read more…

What Are Liabilities in Accounting?

Liabilities in accounting are the financial obligations of a company, such as money owed to suppliers, wages owed to staff, and outstanding loans. Accountants record this information in the balance sheet. What Are Liabilities in Accounting? The definition for liabilities in accounting refers to a company’s financial responsibilities. For small Read more…

What is Posting in Accounting?

Billions of financial transactions happen each day. Every business that operates as a financial entity carries out plenty of financial transactions – transactions that they need to record and keep under control. One way they do this is by using an accounting system and taking advantage of posting in accounting. Read more…

Stock Dividend vs. Stock Split

Stock dividends and stock splits are two terms that are generally used interchangeably when they shouldn’t be. The two terms may be similar, but there are differences between them. The critical difference between stock dividend vs. stock split is that while stock dividends allocate shares free of charge to current Read more…

What is a Suspense Account?

A suspense account is part of the general ledger where organizations record ambiguous entries that require further analysis before being classified. When it comes to investing, a suspense account is a brokerage account where you store cash until you can use it to purchase new investments. Definition of Suspense Account Read more…