Interest receivable is defined as the amount of interest an individual or a firm has earned, yet they have not received them in cash. The typical journal entry that people would use to document such transaction is a debit to their interest receivable account. At the same time, they would record a credit to their […]
Category: Bookkeeping
Revaluation of Fixed Assets
Plant, property, and equipment (PPE), which are the fixed assets, are utilised in the supply of goods and services, manufacturing process, executive functions, or any other tasks in your company. There are two ways an accountant can determine the value of fixed assets, which are the historical cost model and the revaluation model. We will […]
What is Goodwill of a Company?
Goodwill on the balance sheet of your firm is the value that your firm obtained after getting another. If the business pays an amount which exceeds the target’s book value of a target company, the extra amount stands for the business’s goodwill. If the amount paid by an acquiring business is less than the book […]
How to Handle the Cash Flow of Your Business?
The majority of entrepreneurs would make financial decisions according to the current balance they have in their bank accounts. However, this is a dreadful mistake. This is because the balance will be continuously changing, and they always forget this fact. It merely shows you the amount of money you own now, and by looking at […]
Common Bookkeeping Errors that You Should Avoid
Small business owners usually do not put much effort into the bookkeeping process. All entrepreneurs have a bookkeeping system. However, they typically do not ensure that it is updated. There may be some business owners who do not maintain their books for months as the process can be tedious, and it is quite time-consuming. Nevertheless, […]
The Importance of Managerial Accounting
As a small entrepreneur, you need to understand the ways management accounting influence the future of your company. While bigger enterprises have sufficient money to deal with any error in managerial accounting, this is not the case for you as you only own a small firm. Nevertheless, there are some approaches that you can use […]
Books of Accounts – Journal
Ledger and journal are the two most essential books of accounts. Accountants will use the journal to record the financial transaction by following the order in which they occurred, whereas Ledger is utilised to categorise economic activities based on their nature (Also see The Importance of Managerial Accounting). In this article, we will focus more […]
Introduction to Financial Statements
What Are Financial Statements By looking at financial statements, you will be able to know: The source of your money How you use your money How much funds you now possess on-hand that you can use Financial statements give an outline of your accounting details in a reasonably understandable way (Also see 4 Warning Signs […]
Facts About Expending and Capitalising Cost
As you run a small business on your own, you have to decide on many things. Deciding how your business deals with the costs can be one of those decisions. When your firm spends money, you can choose to manage the costs as a capitalising cost or an expending cost (Also see Characteristics of Successful […]
Introduction to Payroll Accounting
It is an undeniable fact that if a firm possesses staffs, it must be responsible for payroll and additional advantages for its personnel. Managing these can be difficult and time-consuming for some firms in Malaysia. Thus, it is advisable to employ an accounting firm in Johor Bahru to ease the process of running a business. […]