Temporary Accounts vs Permanent Accounts Differences & More

by martin | Jan 9, 2025 | Bookkeeping

Broadly categorizing, balance sheet accounts are permanent and income statement accounts are temporary. Because you don’t close permanent accounts at the end of a period, permanent account balances transfer over to the following period or year. For example, your...

Optimizing Your Operating Cycle: Enhance AR Management

by martin | Jul 22, 2024 | Bookkeeping

Implementing these inventory management, accounts receivable, and accounts payable strategies can lead to a more efficient operating cycle, improve cash flow, and enhance overall financial performance for your business. Efficient management of the operating cycle is...

Period Costs Definition, Example, vs Product Costs

by martin | Dec 14, 2023 | Bookkeeping

Most of the components of a manufactured item will be raw materials that, when received, are recorded as inventory on the balance sheet. Only when they are used to produce and sell goods are they moved to cost of goods sold, which is located on the income statement....

Cash Receipts Journal: Meaning, Steps, Examples

by martin | May 17, 2023 | Bookkeeping

The cash receipts journal is an important tool to keep track of cash collected by a business. Since no cash is received from credit sales transactions, they are not recorded in an accounting journal. Credit sales are handled using the accrual basis of accounting,...

What is BOM? Busy Explains the Bill of Materials in Detail

by martin | Dec 13, 2022 | Bookkeeping

While some types of information aren’t always helpful, a general rule of thumb is the more detail, the better. The benefit of a CBOM is that it reduces the effort required to maintain product forms. Any item with an assembly BOM is easily replenished with an assembly...

Accounting and Bookkeeping for Startups Bench Accounting Bench Accounting

by martin | Mar 12, 2020 | Bookkeeping

This isn’t just about crunching numbers; it’s about understanding the financial story of your business. It’s about knowing where your money is going, how to manage cash flow effectively, and how to use financial data to drive growth. This guide...