Period costs are the costs that you are unable to capitalise into fixed assets, inventories or prepaid expenses. On the other hand, product costs are the costs that you have spent on manufacturing a product. You probably have heard of these terms, and you may wonder what their differences are, and you may mix them […]
Category: Bookkeeping
Understanding Product Costs and Period Costs
What type of cost would you include when calculating the expenses that your company has spent? The costs that you should consider are the product costs as well as period costs. The former is the cost that you have spent on producing a product. In contrast, the latter refers to any costs that you are […]
Periodic Inventory System and Perpetual Inventory System
If you are running a manufacturing business, inventories are what you always need to handle. Doing accounting tasks about inventories are challenging, especially if you are unfamiliar with accounting. Hence, if you are not sure how you should do it and you do not want to hire an in-house accountant in your company, outsourcing your […]
How Can You Collect Payments for Overdue Invoices?
An overdue invoice refers to billing that a company has not paid at its due date. If your company extends credit to your clients, there is a high possibility where you need to collect payments for overdue invoices. Other than hiring an accounting firm in Johor Bahru to keep proper accounting records, collecting payments for […]
Should You Include Cost of Goods Sold (COGS) as Expenses?
Some business owners who are not familiar with accounting may have a big doubt in their mind when they calculate the cost of goods sold for their companies: Should they include it as an expense? The answer to this question is yes, yet some of them who do not know this may end up being […]
How to Forecast Cash Flow?
If a business owner wants to forecast the cash flow of his company, the process includes creating a comprehensive list of when his company will receive or spend cash in the future. This information is essential for him to make investment and fundraising decisions. Cash flow is vital for every business because no matter how […]
How Do Accountants Record Transactions?
Have you ever wondered how the accountants in an accounting firm in Johor Bahru record all kinds of business transactions? When a transaction occurs, there are various methods the accountants can use to record it in the books of a company. The most basic way of recording transaction is by using the journal entries. The […]
Understanding Write-offs
Have you ever heard of write-offs? Write-offs refer to the reduction of an item’s recognised value. In accounting, write-offs are crucial as the companies should reflect the reduction in the assets they own in their financial statements. This is for the investors to know the prospects and performance of the company. Thus, do not hesitate […]
Disposal of Fixed Asset in a Company
Throughout the useful life of an asset, you may sell it out at any point within that period. Hence, when this happens, you have to recognise the gain or loss the sale of that asset (disposal) has brought to the business if there is any in your profit and loss statement. Also, you need to […]
An Overview of Reversing Entries
In an accounting period, the accountants may create some reversing entries. These are the journal entries that will reverse certain entries they have made in the last period. Usually, the reversing entries will appear when a new accounting period starts. The accountants will use them when they have accrued some revenues or expenses in the […]