However, when using the analysis technique, the comparison (current) period can be made to appear uncommonly bad or good. It depends on the choice of the base year and the chosen accounting periods on which the analysis starts. In horizontal analysis, the changes in specific financial statement values are expressed as a percentage and in…

Still, creating a solid nonprofit budget is an essential foundation for being a financially healthy organization and having the basis you need to go about advancing your mission. Remember, your budget is a living document that may need to change as the year goes on! Most budgets need at least a few minor adjustments, even…

Remember that inventory is generally categorized as raw materials, work-in-progress, and finished goods. The IRS also classifies merchandise and supplies as additional categories of inventory. With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there’s continuity from sales to services to…

As a result, the employee’s wage is an accrued expense for the employer until paid. An accrual is an accounting adjustment used to track and record revenues that have been earned but not received, or expenses that have been incurred but not paid. Think of accrued entries as the opposite of unearned entries—with accrued entries,…

When automation is implemented, it can create thousands of entries in seconds, and machine learning algorithms can systematically identify anomalies in datasets and correct them. With these technologies, powered by AI and machine learning, businesses will be in a place where they don’t need to fiddle with expenses and revenues through manual data entry. In…