Inventory and stock valuation might sound like a dry accounting concept, but it’s crucial for businesses to manage their finances effectively. In the various methods available, FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and HIFO (Highest-In, First-Out) are different methods used for inventory valuation in accounting and finance. In this blog post, I’ll try to explain […]
No, a fixed deposit does not count towards the minimum balance. I do have to appreciate you, if you come to this article searching such a logical question. The minimum balance requirement is for Saving Accounts (and Current Accounts), it is not waived if you do any other business dealings with the bank. Technically, a […]
The Double Entry Bookkeeping system is scientific, perfect, and a complete method of recording business information in the books of accounts. Generally, in every business transaction, we find two accounts, out of which one account is given debit effect and another account is given credit effect. In other words, in this system for every debit, […]
Bookkeeping is a systematic method of keeping and maintaining a record of day to day business transactions in words and figures in the books of accounts to show clearly and correctly the financial position of a business. Thus, bookkeeping involves the following actions: What Are the Importance of Bookkeeping? In this present dynamic world, every […]
Are you a business owner? Do you understand accounting? Relax, most business owners aren’t accountants; they rely on skilled professionals to do the numbers for them. However, having a basic understanding of accounting terms can help you improve your business skills, grow your company with less risk, and achieve your business goals. Here are a […]
Running a small business takes a lot of work. There is no doubt that new methods are key to success. Today there’s the technology that will help you with this. This technology won’t only help you stay on top of what you’re doing but it will also help you free up time so you’re not […]
Journal is one of the most important book of account, in which business transactions are recorded systematically. In layman’s term, we can say it is a book of daily records. When a businessman completes a business transaction, he records it in the rough or waste book in a short and summarized form. Then this business […]
An account is a list of business transactions falling under the same description for a given period of time. A systematic and summarized record of business transactions with respect to person, property, loss, gain, income, expense is known as account. An account is generally prepared for one complete year. The word Account in abbreviation, can […]
In the accounting field, especially in the finance section, we are taught to create and pass the journal entries in the books of accounts. One must have knowledge of basic accounting rules in order to maintain the transactional entries. There are three rules here which are known as the three golden rules of accounting, in […]