About ten years ago I had a client who used the following date format in the name of his electronic files such as PDFs: 2007-07-31. I quickly realized that this made the files much easier to organize. A couple months ago a friend explained where the date format came from. He said that it comes from the ISO.
Category: Accounting
Bookkeeping is like weaving on a loom
Bookkeeping is like working on a loom, weaving with yarn. Each strand of yarn is like the running balance in each account in the chart of accounts.
COGS equation: calculating cost of goods sold
Let’s review the traditional cogs equation. It’s very easy to understand. I call this the old-fashioned way to compute cogs since it's not the formula used by modern accounting software such as QuickBooks, which relies on the perpetual inventory system. Even though it seems old fashioned, it's a good formula to memorize. The cogs equation's … Continue reading COGS equation: calculating cost of goods sold
What does Other Comprehensive Income do?
It makes sense to think of the OCI statement as sort of like a reconciliation statement. It accounts for the difference between the FMV reporting and the amortized cost reporting on the two financial statements. But off the top of my head, there is something inconsistent about this. The two most important financial statements used by large firms and investors are required to be reported on different bases.
Bookkeeping vs data entry: they are different and why it matters
Good bookkeepers are not merely data entry clerks, because QuickBooks is not merely a database.
Basic accounting theory
Basic accounting theory is the foundation for all of accounting. It is irreformable and can be learned in an aesthetic way.