Accounting

What is deferred tax? Deferred tax is defined as an accounting measurement of future tax consequences for a given enterprise. It is the tax that has not yet been levied by the government, but still needs to be calculated and subsequently disclosed in the financial statements in accordance with the accrual concept. As per the […]

What are Salaries Payable? Salaries payable refers to the amount a company owes to its employees due to their past work. This amount represents an obligation for the company to pay those employees in the future. Primarily, salaries payable come from the salaries calculated for employees at each calculation date. Companies record this amount in

The financial statements prepared by a company use a specific format. Usually, this format comes from the accounting standards that dictate the accounting process. The two most popular accounting standards are IFRS and US GAAP. While this format stays fixed most of the time, some changes may exist for different companies. On top of that,

Fixed Assets can be defined as the resources that the company possesses for the long term, that cannot be immediately converted to cash. Examples of fixed assets include property, plant, equipment, as well as other intangible assets that the company might possess. Fixed Assets are one of the most critical elements presented in the Balance

What is an Accounting Estimate? An accounting Estimate can be defined as a technique to measure items in accounting, which are harder to quantify. Since they cannot be accurately quantified, they are estimated on basis of judgment using intuition, and other knowledge derived from other past experiences. Accounting estimates are mostly used by accountants for

What is Fixed Asset Reconciliation? Fixed Assets are long-term assets that are possessed by different entities for their operations. Examples of Fixed Assets include building, land, office furniture, equipment, vehicles, as well as computer equipment. Fixed Assets outlay is critical for businesses in order to ensure that their financial coverage is at par with other

Small business owners need to be extra vigilant when filing for taxes. This is because, with small business owners, the workload is often such that it requires them to manage several different things at a similar time. However, filing for taxes tends to be one of the most predominant aspects, because of the relative complexities

Definition of Office Expenses Office Expenses are the costs related to the office operations of the business. These are the costs that are associated with day to day operations of the business. Office expenses are categorized as normal operating expenses of the business, and they are considered to be important in terms of determining the

Since the pandemic, there has been an upward trajectory of home offices being set up by employees. Whilst previously, home office expenses were mostly claimed and deducted by business owners operating out of their houses, the dynamic has now changed. Today, with an increasing trend of work from home culture, home office expenses claimed by

Conceptual overview Standard labor hour is the standard time required by labor to make a product. This time is estimated by the business to be used in the production budget. Further, it’s helpful in controlling aspects of the business. For instance, a normal loss is estimated at the time of preparing the production budget. So,