Accrual Accounting vs Cash Basis Accounting: Whats the Difference?

You do the work, you have earned the revenue, and GAAP requires a company to report that revenue as it is earned. The key difference between cash accounting and accrual accounting is related to the timing of when the transactions are recorded. While cash accounting records revenues and expenses once actual cash transfer takes place, […]

Expense: Definition, Types, and How It Is Recorded

It might be beneficial to hire a professional accountant or bookkeeper at a certain point. In short, AP is the money a company owes vendors, while https://www.bookstime.com/ AR is the money owed to the company. Both are vital when auditing company cash flow and the overall financial health of your company. What are Accounting Standards? […]

4 Fantastic Accounts Receivable Tips for Lawyers!

Unfortunately, the accounts receivables process isn’t always smooth sailing. It’s one thing for clients to pay late, but it’s another matter entirely when they dispute a transaction. This is known as a chargeback—the client disputes their debit/credit card transaction, and their money is returned to their bank account. Electronic invoices can be calculated automatically, go […]

What is Comparability in Accounting? Know its Importance

Comparability in accounting is what we define as the financial information provided in statements being comparable across different time periods. If the financial information provided on statements isn’t comparable, it may point out to a wrongdoing. Moreover, a higher valuation of earnings can help boost the value of executives’ compensation packages, which often include a […]