Comparing and analyzing variances in your budget vs. actual performance can provide valuable insight into where your money is going and help you make informed spending decisions. When calculating variances, you might fixate on percentages and lose track of amounts. Some expenses are a larger proportion of overall costs than others. Seemingly small percentage changes […]

To conclude, the drawing account is important in accounting that every individual running an unincorporated firm should understand. Drawing accounts are a distinct component of the double-entry accounting system and are used to record transactions that are unrelated to daily business activities. Thus, drawing accounts are temporary accounts in which transactions are recorded until they […]

Apple pays for rent ($600) and utilities ($200) expenses for a total of $800 in cash. Current assets and liabilities can be converted into cash within one year. However, each partner generally has unlimited personal liability for any kind of obligation for the business (for example, debts and accidents). Some common partnerships include doctor’s offices, […]

In that case, you will likely owe the employee the value of their PTO in cash as part of their final paycheck. It’s smart to keep a close eye on the payroll expenses  that have accrued over a pay period, even if the checks haven’t gone out yet. Holiday pay for the leave accrued should then […]