FAQ – Page 2 – Basic Accounting Help

Why Does a Business Need to Prepare a Cost of Goods Sold Schedule?

Businesses constantly evaluate their operation and production practices to make sure they are running as efficiently as possible. One accounting tool which helps companies locate a weakness in their production strategies is a cost of goods sold schedule. This report is a valuable part of the income statement that provides tremendous insight into the net …

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What is the Direct Write-off Method and why is it Important?

During a typical business transaction, a service is performed or a product is sold, and the business is paid for that service or product at the time provided. However, it is all too common for a business to extend a customer’s time to pay, essentially providing a loan or line of credit to the customer. …

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Question about beginning inventory for a new LLC

Question – If I invest in inventory at the start of my LLC and account it as beginning inventory, will I still be able to reduce assets and increase Cost of Goods Sold (COGS) as it sells? I’m just unsure and confused because technically the LLC did not spend any cash to acquire it and …

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How do I fix my inventory on hand?

Question – I have managed to really mess up my inventory on hand. The main culprit seems to be my handling and confusion over returns. I keep a spreadsheet with that I thought was pretty accurate but turns out not so much, so I’m going back and trying to fix it. If something sells in …

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How do I go back and reconcile checking accounts?

Question – In order to go back and reconcile checking accounts from the beginning of the year, do I just undo January 1 and do it correctly or do I undo the most recent one and go backwards? Our Answer In Quickbooks if you choose to undo January’s reconciliation, it will prompt you that all reconciliations from …

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