As a result, businesses can often better anticipate revenues while tracking future liabilities. This principle assumes that to show the entity’s real performance, financial statements should be shown the real economic transactions rather than cash flow (cash basis). If you use the accrual basis of accounting to record transactions, be sure to fully document why… Continue reading What is accrual basis accounting and how does it work?
Month: May 2021
Whats the Undeposited Funds account?
Another way to skip the tedious process is by accepting credit cards or another online payment option such as ACH. Doing so allows you to skip the longer workflow because each transaction gets processed as a single transaction, meaning there’s not a chance for it to show up as a lump sum payment on your… Continue reading Whats the Undeposited Funds account?