Retained Earnings Normal Balance

The most important thing for any business is to make as much profit as possible. This is why business owners know what the retained earnings and retained earnings normal balance are, how to calculate them, and what it all means. Retained earnings are part and parcel of running a business. Read more…

Cash Disbursement Journal

How does your business process payments? More likely than not, your business uses cash on some level. If your business has cash expenses, then you need to keep a cash disbursement journal to process and record these expenses. Having a journal and recording entries for transactions should come as second Read more…

Net Income vs Gross Income

Whether you run a business or work for an employer, it’s good to understand the difference between gross vs net income. Understanding the difference gives you a much better understanding of your current financial situation. These terms show up when filing taxes, getting a mortgage, and applying for loans. Before Read more…

Statement of Comprehensive Income

Running a business requires you to carefully consider profits, costs, and overall accounting. The accounting and finance departments of a business have to work together closely. These departments must account for the full activities of an enterprise and do so in a simple and effective manner. One way they do Read more…

Multi-Step Income Statement

The income statement is one of the three financial statements. This statement gives you an accurate measurement of company performance, and may also be called a profit and loss statement. An income statement offers an overview of total expenses and revenues across a specific period. While smaller businesses do well Read more…

Accounting Adjusting Entries

The accounting cycle can be broken down into several steps, one of which is the accounting adjusting entries phase. Accountants record adjusting journal entries into general ledger accounts. These accounts are prepared at the end of the financial year. What is an Adjusting Entry? As mentioned, adjusting entries are made Read more…

Wave Accounting Review

There are many accounting and bookkeeping solutions available for freelancers and entrepreneurs. Wave Accounting is one of the most well-known names in the business, but how does it really compare to other solutions? Our review of Wave online accounting is here to answer that question – and more. What is Read more…

Single Step Income Statement

The income statement is an integral part of accounting, both personal accounting and business accounting. Income statements are broken down into the single-step income statement and multi-step income statement. Let’s look at these different financial statements and assess the difference between single-step and multi-step income statement options. We’ll compare the Read more…