A well-planned cash flow is essential for nonprofits as it ensures that the organization has sufficient funds available when needed. Proper cash flow planning can also help avoid financial pitfalls and improve the organization’s overall financial stability. To evaluate your nonprofit’s finances, the IRS requires you to record your yearly revenue and expenses. This is […]
This ensures the expenses are recognized in the correct tax period, aligning with IRS regulations and helping to accurately match expenses with revenues. Since businesses don’t normally pay employees immediately, there ends up being a lag time between the end of a pay period and the date the employee is compensated. Next, you have to account […]
A long-term asset account reported on the balance sheet under the heading of property, plant, and equipment. Included in this account would be copiers, computers, printers, fax machines, etc. The credit balance in this account comes from the entry wherein Bad Debts Expense is debited.
Cost of goods sold is usually the largest expense on the […]