#accounting-basics
Основни счетоводни концепции, терминология и принципи за собственици на малки бизнеси
LCNRV requires reporting inventory at the lower of its cost or net realizable value (NRV = selling price − completion costs − selling costs). Once written down under U.S. GAAP, inventory cannot be written back up.
A practical walkthrough of the LCNRV rule under ASC 330 — how to calculate net realizable value, book the write-down, handle obsolete or damaged inventory, and avoid the phantom-profit trap of overstated inventory on the balance sheet.
Opening Balance Equity is a temporary account that should read $0.00 once setup is done. Learn what it means, how to set up books mid-year from a trial
Opening Balance Equity is the suspense account accounting software creates to keep the balance sheet in balance during migration. Build a supportable opening trial balance, reconcile every account at the cutover date, then journal OBE into Retained Earnings, Owner's Capital, or Common Stock and Additional Paid-in Capital based on entity type.
A walkthrough of how to record sales returns, allowances, and discounts as contra-revenue accounts under ASC 606, including the refund liability journal entries, sales tax reversal, and the gross-margin effects most small businesses miss.
A suspense account is a temporary ledger account that holds an unidentified transaction or an unexplained trial-balance difference so the month-end close can finish on time. This guide covers when to use one, how to record and clear the entries, and how it differs from a clearing account.
The allowance for doubtful accounts estimates uncollectible receivables. Learn the aging and percentage-of-sales methods, plus how write-offs keep accounts
Точката на рентабилност в единици е равна на общите фиксирани разходи, разделени на маржа на приноса за единица. Това ръководство показва как да разделите фиксираните и променливите разходи, да изчислите маржа на приноса, да намерите обема на продажбите на точката на рентабилност и да измерите маржа на безопасност.
A bloated chart of accounts with 200 entries hides profit instead of revealing it. Most small businesses need 30 to 60 accounts, numbered in family blocks with gaps, with COGS separated from operating expenses and departments tracked as dimensions rather than duplicated accounts.
A practical guide to designing a chart of accounts that produces useful financial statements — how to number accounts in increments of 10, when to use sub-accounts versus dimensions for locations and departments, and the year-end cleanup ritual that prevents bloat.
Section 461(h) layers an economic performance test on top of the all-events test, so accrual-basis taxpayers cannot deduct a liability until the underlying activity actually happens. The recurring item exception accelerates deductions for predictable expenses when economic performance occurs within 8½ months of year-end and four specific conditions are met.
Nine costly DIY bookkeeping mistakes—from mixing personal and business expenses to skipping year-end adjustments—with concrete fixes for each, so you can keep clean books without hiring a full-time accountant.
