Category: Bookkeeping

Another frequent reason you’d void a check is to set up direct deposit. Employers may ask you to fill out a short authorization form and provide a voided check to get started. The check will be used only to set up your paycheck to be deposited directly into your account, not as a payment method.… Continue reading How to Void a Check: Set up Payments, Deposits, and Investments

Your expenses will include the costs of running your nonprofit organization; such as salaries, rent, office supplies, and marketing. To estimate your expenses, review your organization’s financial history and base your estimates on that. If you don’t have a financial history to review, tally up the expenses you expect to incur. About three to six… Continue reading Budget for Non-Profit Organizations: Guide for 2025 SBHQ

The reason the going concern assumption bears such importance in financial reporting is that it validates the use of historical cost accounting. It’s given when the auditor has doubts about the company and the assumption that it is a going concern. Companies may need to restructure, sell assets, or liquidate, affecting shareholders and causing broader… Continue reading Assessing Going Concern Issues and Their Financial Implications

Similar to LLS, Heifer International has an entire page on its website devoted to sharing its financial information with stakeholders, including a graph that maps out its expenses over the fiscal year. To continue fulfilling your essential role in the community, you must meet IRS reporting requirements, build donor trust, and make informed decisions that contribute to your… Continue reading Free Nonprofit Statement of Activities Template & Example

Using those percentages, the company can estimate the amount of bad debt that will occur. That allows us to record the bad debt but since accounts receivable is simply the total of many small balances, each belonging to a customer, we cannot credit Accounts Receivable when this entry is recorded. In the allowance method, businesses… Continue reading The Direct Write Off Method: Pros & Cons

When feasible, companies may review individual customer accounts to identify specific balances unlikely to be collected. An architectural firm with 50 clients might flag three accounts—a bankrupt developer, a chronically late-paying client, and a customer in a legal dispute—and set the allowance equal to their balances. This method is a bit more nuanced since it… Continue reading Net Accounts Receivable: Percentage of Sales Method Explained: Definition, Examples, Practice & Video Lessons