Accounting Principles Explained: How They Work, GAAP, IFRS

To facilitate comparisons, the financial information must follow generally accepted accounting principles. However, about one third of private companies choose to comply with these standards to provide transparency. Even though the U.S. federal government requires public companies to abide by GAAP, the government takes no part in developing these principles. Instead, independent boards assume […]

Bookkeeping vs accounting: whats the difference?

Because bookkeepers tend to work for smaller companies, they may not be paid as much as accountants. Knowing the differences between the two can help people find their niche in the industry and can give guidance to companies on who to hire for their needs. On the other hand, if you need a tool to […]

Using Control Accounts in Your Business Bookkeeping

It’s an online platform to practice your skills, give exams and get certified fast in you field of interest. Mary Girsch-Bock is the expert on accounting software and payroll software for The Ascent. For example, Jim’s hardware store invoiced two customers for a total of $700. He also received a payment in the amount of […]

Statement of Activities: Reading a Nonprofit Income Statement

Save the Children’s annual report clearly states that an independent source audited their financial statements (starting from page 64). Once again, this statement will show transparency and build trust with their donors. Gross receipts are the primary difference between nonprofits and for-profit companies filing a statement of activities. Nonprofit financial statements are similar to the […]