Accounting articles

Tax Lot Accounting Basics (03/12/2012)
... ATTLAS provides reconciliation reporting which ensures that tax lot accounting information matches with the core records along with identification and basis adjustments on wash sales. Michael Dougherty is a financial writer who lives in Boston. He has written for newspapers and magazines along with some of the leading online Web sites. .....

Activity Based Management in Accounting (09/25/2010)
... (See ‘‘ABC/ABM Dictionary,’’ which was used to help construct many of the definitions used in this entry.) ABC information is extremely helpful in the strategic analysis of areas such as process and plant layout redesign, pricing, customer val ues, sourcing, evaluation of competitive position, and product strategy. ACTIVITY AND ACTIVITY ANALYSIS An activity is a business task, or an aggregation of closely related purposeful actions, with clear beginning and ending points, that consumes resources and produces outputs. An activity could be a single task or a simple process. Resources are inputs, such as materials, labor, equipment, and other economic elements consumed by an activity in the production of an output....

Generally Accepted Accounting Principles (09/20/2010)
... Accounting fiscal periods usually coincide with calendar periods, although not necessarily with the calendar year. For example, a company’s fiscal year may be July 1 to June 30 or February 1 to January 31. The Going Concern Concept When accountants are keeping the books and preparing the financial statements, they presume that the company will continue to be in existence for the foreseeable future. If there is serious doubt about this, or if the company’s ceasing operations is a certainty, the financial statements (essentially the balance sheet) will be presented at estimated liquidation value. Historical Monetary Unit Accounting is the recording of past business events in dollars....

Problems That Arise from Allocation Process (09/20/2010)
... It Understates theProfitability of Business Beyond Budgeted Volume Overhead allocations are assigned to all products,regardless of volume. When sales surpass budgeted expectations, theaccounting department will continue to charge these allocationsto the individual products even though the company hasalready generated enough business to cover the actual corporateoverhead. These fictitious charges will continue to be addeduntil the end of the year. This leads to a significant understatementof the actual profits of each business that has had sales above thebudgeted number and may cause the company to underreward unitmanagers who surpass their sales budgets. It InhibitsMarketplace Aggressiveness Incremental business is really more profitable thanthe accounting information reveals....

ACCOUNTING INFORMATION SYSTEMS (09/16/2010)
... These systems are used to support an organization’s daily operational activities; current and future tactical decisions; and overall strategic direction. MISs are made up of several major applications including, but not limited to, the financial and human resources systems. Financial applications make up the heart of an Accounting information systems in practice. Modules commonly implemented include: general ledger, payables, procurement/ purchasing, receivables, billing, inventory, assets, projects, and budgeting. Human resource applications make up another major part of modern information systems....

Equation of Exchange (09/10/2010)
... P is a factor standing for the price level and is calculated by dividing nominal GDP by real GDP. Velocity is calculated by dividing nominal GDP by the money stock. Nominal GDP divided by M equals V, which can be converted to the form MV = nominal GDP. Furthermore, nominal GDP divided by real GDP (Y) equals the price index (P), which is mathematically equivalent to saying that nominal GDP = PY. There fore MV = PY is what is called an identity in mathematics, true by definition....

The steps of the accounting cycle and computerized accounting systems (08/31/2010)
... These sales become inputs into the accounting system. Every organization establishes a chart of accounts that identifies the categories for recording transactions and events. The chart of accounts for the retail establishment mentioned earlier in this paragraph will include Cash and Sales. 2. Journalize transactions: After collecting and analyzing the information obtained in the first step, the information is entered in the general journal, which is called the book of original entry....

FINANCIAL STATEMENTS ~ WHO USES THEM AND WHY (08/15/2010)
... Rating agencies (such as Moody’s, Standard & Poor’s, and Dun & Bradstreet), to assign credit ratings. 5. Major customers and suppliers, to evaluate the financial strength and staying power of the company as a dependable resource for their business. 6. Labor unions, to gauge how much of a pay increase a company is able to afford in upcoming labor negotiations....

Negotiable Order of Withdrawal Accounts (08/11/2010)
... Massachusetts had mutual savings banks, which were insured by a state insurance fund and therefore independent of the regulations imposed on the federally insured depository institutions. By 1970 Massachusetts savings banks were already authorized to waive a 30-day withdrawal notice for regular savings accounts, and depositors could walk into a savings bank and transfer funds to a third party by using counter checks devised for that purpose. The Worchester bank only proposed changing the location at which the third-party draft was written. The idea came before the Massachusetts Supreme Judicial Court, and the court took two years before deciding that the Consumer Savings Bank had a point. After 1972 NOW accounts spread rapidly among mutual savings banks in Massachusetts....

Why Law Firm Billing and Trust Account System Must Work in Tandem (01/12/2010)
... Law Firm Billing and Trust Accounting are Interrelated A standard practice for most law firms is collecting advanced client payments (retainers) for services. In general, states have strict accounting rules that require attorneys to deposit unbilled/unearned client funds in trust accounts. If an attorney expects to use advanced funds quickly and the specification is in the client engagement letter, state rules may permit deposit of retainers in a regular operating accounts. The rule of thumb is strict adherence to states' professional and ethical rules pertaining to client funds. Failure to abide by the rules and maintain proper trust and operating account bookkeeping could result in administrative, civil or criminal sanctions....

Basic Accounting Principles (10/24/2009)
... But large corporations cannot do this because of large amount of cash transactions and the other factor is the fear of loosing their reputation with stakeholders if tracked by the government agencies. Whatever accounting principle is followed it is mandatory nowadays to have an accounting information system in place. Small business people will find difficulty in investing for this kind of a setup. To get more functionality and accuracy as expected with information system, but always with a higher price tag. Numia....

What are the methods for distributing client money in the event of insolvency (10/08/2009)
... Secondary pooling A secondary pooling event occurs on the failure of a third party to which client money held by the intermediary has been transferred. In such circumstances, the intermediary will only be legally responsible for any shortfall if it has failed in its fiduciary duty (whether as agent or trustee) to the client. (On transfer of the money, it retains the role of fiduciary.) The intermediary may decide to make up any shortfall in the client money themselves. If it does, a secondary pooling event will not occur....

Financial Accounting for Constraction Contracts (03/13/2009)
... Therefore, profits on incomplete contracts should be considered, of course, after providing adequate sums for meeting unknown contingencies. There are no hard and fast rules for the calculation of the figures for profit to be taken to the credit of profit and loss account. However, the following rules may be followed: (a) Profit should be considered in respect of work certified only, work uncertified should always be valued at cost. (b) No profit should be taken into consideration if the amount of work certified is less than 1/4 of the contract price because in such cases it is not possible to foresee the future clearly. (c) If the amount of work certified is 1/4 or more but less than1/2 of the contract price, 1/3 of the profit disclosed, as reduced but the percentage of cash received from the contractee, should be taken to the profit and loss account....

financial and Cost Statements (02/10/2009)
... A merchandising company, such as a retail furniture store which buys finished furniture and sells it in the same form i.e., sells the goods it buys without changing the basic form. The income statement which is prepared by a merchandising concern needs no calculations of cost of goods manufactured. But the income statements prepared by the manufacturing concern requires the calculations for the cost of goods manufactured....

Financial Statement Analysis (02/10/2009)
... Financial statement analysis involves careful selection of data from financial statements for the primary purpose of forecasting the financial health of the company. This is accomplished by examining trends in key financial data, comparing financial data across companies, and analyzing key financial ratios. Managers are also widely concerned with the financial ratios. First the ratios provide indicators of how well the company and its business units are performing. Some of these ratios would ordinarily be used in a balanced scorecard approach....

Importance of bookkeeping and accounting services (02/04/2009)
... They have the ability to deliver cost-effective services faster and better. If you are choosing online services provider then you can get, Precise data • High quality work • Well planned records • Cost efficiency • Complete accuracy • You can save your valuable time and money • Highly qualified accountants • You can maintain proper order and file system for all records • You can focus to grow your business So, if you want to save time for main processes of your business then outsource your accounting and bookkeeping services is the best option. After outsourcing these services, you can also focus on other important processes of your business without any tension. So, now you just have to choose the best service provider who can serve you the accurate services. Author Bio: Online bookkeeping service is a one of the most experience bookkeeping firms of this kind in outsourcing....

Outsourcing your medical billing (02/20/2008)
... Ranking of a medical billing company is often defined by the level of follow-up applied to the claims and can have a critical effect on reimbursements. By application of proper follow-up procedures, the billing company can isolate claims that go unpaid, or partially paid, and work with the medical care provider and the insurance carrier to make sure that edited claims and resubmission are correct. Secondary, Tertiary and Workers’ Comp Claims These claims usually require special consideration and handling, as they often need additional documentation and process knowledge. Service providers often get confused with the details and procedures required for these particular claims if not experienced and prepared. Practice Reporting and Analysis Quality custom reports provide critical information about avenues for improvement....

Accounting Outsourcing Services Can Boost Your ROI (02/06/2008)
... They will also be able to attain the desired quality in the work and turn around time. Many companies have generated huge savings from this feature. And more and more companies are heading towards this service for their company’s growth. There are many companies who are geared up to meet companies’ outsourcing requirements. They provide not only customized business solutions but also bring flexibility and cost-effectiveness to a company’s business services thus helping it simplify resources and maximize time and money....

EFFECTS AND ACTION IN ACCOUNTING (01/30/2008)
... Steve Albrecht and Robert J. Sack, the report makes a critical examination and analysis of accounting education in the United States. It is not surprising that these prestigious bodies were able to agree on the findings of the research. Their conclusions extend and reinforce previous studies and opinions expressed in other countries. The main message is that accounting education needs to change and it needs to change soon....

Accounting Coursework (01/15/2008)
... Great personalities with very recognizable achievements in the subject field can be a good topic for researching. Therefore, you will not be required to write too technical papers but can still maintain the interesting factor of your articles. Second, a definite type of a project in accountancy is the creation of summary project in a technical way. There are some instructors who will develop a form of question and answer module for the students. Then, these questions will be sent out to the whole class and will be required them to answer....