Learn from my onsite experience; how to deploy QuickBooks software solutions for Poultry farm production and inventory management.
Running a poultry farming is not as straight forward as other general retail or manufacturing business where you only buy and resell products. It’s a business run by people or entrepreneurs who are willing to invest their time, money and energy at the initial stage, exercise patient, grow and employ more staff as the farm expands.
For growth-oriented managers who are concerned about cash flow and how resources are utilised, I will be sharing tips on how I deployed QuickBooks accounting software for their line of business with takeaways. Poultry farming is one of the areas I don’t implement accounting software the same way I have always done in other lines of sectors – real diligence is required to take account balances from manual to software automation.
Poultry farming is one of the areas I don’t just implement accounting software the same way I have always done in other lines of sectors – real diligence is required to take livestock and relevant account balances from manual to software automation.
Continue reading “What Setting Up QuickBooks For Poultry Farmers Looks Like”
Recent search terms:
- nu vot (7)
- role of accountant in poultry farm (2)
- poultry farming (2)
- poultry accounting (2)
- poltry prodaction bookkiping (1)
- ethiopia hen (1)
- poultry accounting software in nigeria (1)
- chicken farming (1)
- Poultry farming Cost of goods sold set up under QuickBooks (1)
- accounting for poultry (1)
Accounting For Payday Loans – Journal Entries For Payday Loan, Cash Advance & Interest Receivable With Provision For Bad Debts
Payday Loan is a type of cash advance offered to individuals or employees looking for emergency cash to finance short-term needs. It is a convenience way to raise cash as it comes with convenient terms like interest, repayment period etc.
Accounting Entries For PayDay Loan
When you advance a loan to customers, CR your bank account and DR payday loan receivable account with the amount disbursed as a loan. The interest income on the loan should also be accounted for, hence, DR payday loan receivable account and CRinterest income account with the interest portion of the loan.
On receipt of part or outright payment, DR your bank account and CR payday loan receivable account.
Continue reading “Accounting For Payday Loans & Cash Advance”
Accounting Entries For Foreign Exchange Transactions – Journals For Forex Purchases, Fluctuation, Gain or Loss, Hedge, Revaluation & Currency Sales
A foreign exchange transaction occurs when you pay a supplier or receive payment from a customer in a currency different from your home currency or a currency your financials are reported in. In such transaction, you need to factor in the prevailing exchange rate your reporting currency is, to the foreign currencies for seamless conversion to be easy.
When treating foreign exchange transactions in your book, you need to account for either gain or loss arising from forex conversions – which could be exchange rate gain/loss or unrealised profit/loss – while the exchange rate gain or loss report lets you track all income earned or loss incurred on business transactions, unrealized profit or loss arises when there is a change in the value of your foreign currency portfolio, which could be cash in hand or bank.
Let’s discuss the accounting entries for foreign exchange transactions.
Foreign Purchases Transactions
When you make payment for goods supplied or services rendered by a foreign supplier, CR your bank account and DR the inventory account or DR expenses account (for services) by multiplying the foreign currency value by the current exchange rate.
Continue reading “Accounting Entries For Foreign Exchange Transactions”
Recent search terms:
- what accounting entries are needed for foreign exchange analysis (5)
- accounting for collateralised foreign exchange futures (3)
- unrealised loss to reserve - accounting entries (1)
- sale of property accounting entry in foreign currency (1)
- fx accounting entries (1)
- forex accounting entries (1)
- foreign exchange accounting entries (1)
- accounting for foreign currency exchange (1)
- accounting entries foreign bank (1)
- accounting entries for notional foreign currency (1)
- accounting entries for exchange currency (1)
A mortgage-backed security is a term that became popular during the global market crash of 2008 that dragged big financial institutions like Lever brothers, and Fannie Mae under.
How do Mortgage-backed securities work?
Let’s paint a scenario to explain what this term means to a layman – Assuming you want to buy a house and would like a certain percentage of the cost to be financed by mortgage or home equity from ABC bank. ABC bank paid the money into your savings account after accepting the terms of payment – you agree to repay the loan (with interest) within a certain period.
To ABC bank, the mortgage loan portfolio (which comprises the principal and interest payment receivable over a set schedule) is an asset which will be treatment under “Loan & Advances” in the statement of financial position.
Continue reading “Mortgage-Backed Securities Explained & Accounting Entries”
Recent search terms:
- accounting for mortgage backed securities (26)
- accounting entries for mortgage backed securities (2)
- mortgage back securities entries (1)
- journal entry for mbs bond interest (1)
- how do you record a mortgage backed paydown (1)
- are mortgage backed securities debt investment accounting (1)
- accounting treatment Asset-backed security (1)
- accounting for mortgage securitizaiton (1)
- Accounting entry for mortgage backed security (1)
- accounting entries for securitization (1)
- mortgage backed security gaap (1)
Accounting For Subscriptions Revenue – Learn Journal Entries For Membership, Software or Magazine or Digital Subscription Receivables & Receipts
Let’s say you run a subscription –based business where members or customers make an upfront payment into your account to enjoy a particular product or service for a specified period, you need to understand that it is different from a one-time sale of a product. In accounting, recognising the full amount paid as an income will definitely be an error as you can only recognise revenue for services rendered not from advanced payment.
Here are steps to treat subscription revenue using a scenario.
A newspaper company publishes a magazine on latest technology innovations disruption ideas. Members pay on a monthly, quarterly or yearly basis to get latest publications. If a long time subscriber decides to pay $1000 for 10-month issues, what are the relevant accounting entries in the books of account?
Continue reading “Accounting For Subscriptions Revenue – Membership, Software or Magazine”
Recent search terms:
- accounting for subscription services (3)
- accounting for subscription with free month (1)
- accounting how to reord magazine subscription revenue and agency fees (1)
- bookkeeping entries for membership fees of a stokvel (1)
Accounting Entries For Loan Receivables & Payables – Learn How To Treat Loan Notes, Interest Payments, Provision, Write Off & Convertible Loan QuickBooks
A loan is a debt instrument provided by an entity to another entity known as the borrower at an agreed interest rate, evidenced by a promissory note which specifies the principal sum, interest rate charged by the lender and period of repayment.
In treating Loan disbursement in your books of account, there are two sided entries to note: from an issuer’s perspective and a receiver’s angle. When it’s the latter the loan is payable but on the former, you tag it receivable.
Accounting Treatment For Loan Receivables
When you issue a loan note to a borrower, it is treated as an asset, which, if receivable under a year, is a current asset. In your book, CR your bank account, and DR asset account – Note receivable – with the amount advanced to the borrower.
On receipt of an agreed interest from the Notes, you DR your bank account and CR the interest income account ( to the income statement)
Continue reading “Accounting Entries For Loan Receivables & Payables”
Recent search terms:
- loan receivable accounting entry (19)
- loan payable accounting entries (12)
- loan receivable accounting entries (12)
- loan payable entry (3)
- accounting entry for loan receivable (3)
- double entries of loan (2)
- DR cash CR Intercompany Loan receivables (2)
- dr equity cr notes payable (2)
- nature of loan receivables (2)
- accounting entries for loan receivable (2)
- accounting entries for loan (2)
- loan receivables entry (2)
- entry to book loan (1)
- financial statement for loan receivables (1)
- dr cash cr loan payables cr interest income (1)
- when is loan receivable an investment (1)
- how to account for income from writing off a loan payable (1)
- amortization for loans receivables entries (1)
- accounting loan payable (1)
- accounting for payables (1)
- accounting for loans sold service retained (1)
- accounting for loan receivables ireland (1)
- accounting for durf loan (1)
- accounting for a 15 year loan receivable (1)
- accounting entries for loan and interest receivables at inception (1)
Accounting Treatment For Insurance Premium – Learn The Journal Entries For Insurance Premium Income Paid In Advance, Payment, Claim Settlement & Brokerage Fees or Commission
As a business owner who is concerned about the risk of loss, insurance is designed to secure your business against future occurrences that might lead to loss of asset or properties due to an unforeseen event. Hence, you are expected to pay an agreed premium on a monthly or annual basis.
Since the amount calculated as a premium to cover the risk involved is paid to an insurance company prior to the prior covered, you will definitely be wrong if the full figure is expensed to a profit or loss account. In other words, that amount should be treated as prepayment which is a current asset.
Here are accounting entries for insurance premium paid, insurance claim, insurance compensation, insurance premium income and brokerage fees.
Insurance Premium Paid
DR the ‘Insurance Prepaid” account and CR “the bank account with the actual amount paid to the insurance company.
DR the “Insurance Expenses” account and CR “Insurance Prepaid” account with the amount written for the month.
The idea here is that the insurance premium is amortised for the period covered and expenses on a monthly basis till the value is written off to the profit or loss account.
Continue reading “Accounting Treatment For Insurance Premium, Claim & Brokerage”
Recent search terms:
- insurance claim accounting (20)
- accounting for insurance claim payment (5)
- accounting treatment for insurance claim (4)
- accounting treatment for broker fees (2)
- accounting of interest charges incurred for insurance premium (2)
- returned insurance premium in unallocated cash account (2)
- rcv claim gaap treatment (2)
- account format for insurance company (2)
- insurance claims accounting treatment (2)
- insurance accounting (2)
- accounting treatment for insurance (1)
- accounting treatment for cash in brokerage account (1)
- accounting treatment for asset compensation (1)
- accounting of other charges incurred for insurance premium (1)
- accounting of loans on insurance policies (1)
- accounting affects on monthly premium income (1)
- where is insurance deductible goes in accounting (1)
- accounting entry for insurance (1)
- accounting for claims (1)
- accounting for insurance premiums paid for events in prior years (1)
- accounting for financed insurance premiums (1)
- accounting for insurance premiums (1)
- accounting for insurance premium rebates (1)
- accounting for insurance excess (1)
- accounting for insurance comp (1)
Accounting Treatment For Debt Securities – Treasury Bills & Bond Investment – Journal Entries For Treasury Stock & Bond Purchases at Discount or Premium From Government.
A business with excess cash can, as an alternative to bank savings, decide to invest in a short or long term securities which guarantee a fixed return on quarterly, semi-annual or annual basis. One of such securities could be debt or equity. In this accounting treatment, we will share tips on how to record investment in debt securities – treasury bill and bond investment. While treasury bills is a short-term debt security issued (above or below the face value) by the government to raise finance for the capital project with maturity less than a year, bond investment is a long-term debt instrument with coupon rate and maturity up to 20-30 years.
These two debt securities are popular among corporate investors because they are regarded as risk-free investment backed by the credit of the government.
Return on T-Bill Vs Return on Bond Investment
In calculating the interest on investment in treasury bills, you compare the face value and purchase price. It is sometimes referred to as a “discount”. To recognise interest income consecutively over the life of a Treasury bills the interest method should be used. The interest method is used to amortize the discount or premium and recognize interest income. The interest rate used in calculating the return on this debt security is the prevailing rate of similar securities, other known as “effective interest rate”. This is different from the computation of interest earned on bond securities where you calculate the known coupon rate against the purchase price.
Continue reading “Accounting Treatment For Debt Securities – Treasury Bills & Bond Investment”
Recent search terms:
- entries of purchase of a treasury bill under ifrs 9 (3)
- treasury bill purchase accounting engry (2)
- how to record treasury bill (2)
- how to calculate impairment on treasury bills (2)
- how to account for discount received on purchase of treasury bills (2)
- investment in treasury bill - accounting treatment (2)
- treasury bills GAAP Fair value (2)
- accounting for tb investment and maturity (2)
- how to disclose treasury bonds in financials (1)
- how to handle US Treasury bills in financial statements (1)
- How to treat accrued interest receivable on treasury bills (1)
- how to treat road bonds in financial statements (1)
- ifrs/treasury bill in nigeria (1)
- Illinois Accounting quickbooks bill com (1)
- investment in treasure bill acc (1)
- accounting for short term treasury notes (1)
- how to book the purchase of treasury bills (1)
- accounting transactions for premium price of treasury bond (1)
- accounting treatment for discount received on the purchase of treasury bills (1)
- accounting treatment for treasury bills (1)
- accounting treatment of treasury bill discount (1)
- debt securities accounting (1)
- gaap accounting for buying T-Bills on margin (1)
- treasury notes cost basis gaap (1)
- how to account for us treasury bills on GAAP financial statements (1)
Accounting For Structured Settlements & Annuity Company – Learn The Journal Entries For Structured Settlement Annuities Purchaser From A Life Insurance Company
According to Wikipedia, “A structured settlement is a negotiated financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving some part of the settlement in the form of periodic payments on an agreed schedule, rather than as a lump sum.”
Let’s paint a scenario here: Mike was injured in an Auto accident which he filed a suit in court asking for compensation. After hearing, he was awarded $390,000 as compensation receivable from the other driver, the cash of $390k, when paid into his account, is tax-free; not subject to tax deductions. But if he decides to invest the money in a fixed deposit account, earnings on that principal is subject to tax.
Continue reading “Accounting For Structured Settlements & Annuity Company”
Recent search terms:
- gaap accounting for fixed annuities (2)
- accounting entries for annuities (1)
- accounting for annuities (1)
- annuity accounting entries (1)
- bookeeping for annuities (1)
- GAAP accounting for structured settlements (1)
Accounting Treatment Of Trading stock or Private Equity Fund In QuickBooks – Journal Entries For Share Purchased, Dividend, Disposal or Sales Of Shares, & Revaluation of Shares
Trading stock or investing in shares is an activity that involves buying a share of a company’s capital with the purpose of being a part owner of the business. The reward for share purchases or private equity investment could be price appreciation and/or dividend distribution.
While the former (share price appreciation ) happens when the company’s quoted price in the stock market increases as a result of demand outweighing supply, the latter is the proportion of the profit earned for the period which is payable on a quarterly or annual basis.
Continue reading “Accounting Treatment Of Trading Stock or Private Equity Fund”
Accounting Treatment For Credit Card Transactions – This Tip Contains Guide On How To Use QuickBooks Journal Entries For Credit Card Sales, Merchant Fees, Payments And Expenses
Unlike a normal business transaction carried out face to face, a credit card transaction involves the use of a payment card number, and pin issued by a provider to make payment online. For instance, you can order a product from merchants’ store using MasterCard or Visa Card to make payment.
As a business owner, it is important for you to treat credit card transactions the way you record your banking transactions. But, you need to be sure that the card is not attached to a bank already tracked in a separate account for the transaction.
Here are accounting treatment of Credit Card transactions:
Continue reading “Accounting Treatment For Credit Card Transactions”
Accounting Treatment For Disposal Of Fixed Assets – Find Tips to Record Sale of Fixed Assets With Entries On Gain or Loss in Income Statement Using QuickBooks UK, US or Canada.
When an asset is disposed of, there are standard accounting entries you should follow, especially when you are using an accounting software. To explain this, I will be sharing a typical scenario of an asset disposal for a hypothetical company, let’s call it ABC Health Ltd.
An asset was bought on 1st, January 2017 for N100,000 with an estimated useful life of 10 years expected to be depreciated using straight-line method. At the end of 5th year, the asset was sold for N75,000 to another firm. What is the accounting treatment for disposal of fixed assets in QuickBooks?
Here are steps to treat this transaction in QuickBooks:
Continue reading “Accounting Treatment For Disposal Of Fixed Assets”
Recent search terms:
- accounting treatment for disposal of assets (1)
- Accounting treatment for disposal of fixed assets (1)
According to an article published on TheNation Newspaper online, ‘Withholding Tax (WHT) is an advance payment of income tax. In principle, it is a payment for the ultimate income tax liability of the taxpayer or company. It is not a separate tax and does not confer an exemption from the filing of yearly tax returns by the company which suffered WHT. The tax is deducted at source when a payment is to be made to the beneficiary‘.
It is a tax deducted at source for service rendered or sales.
This article illustrates how you should treat Withholding Tax in an accounting software (QuickBooks)
When you render a service or make a sale to your customers, by law they are expected to withhold a certain percentage of the transaction value as a tax which is remitted to tax agency and at the end pay the remaining balance as settlement. In such scenario, you are expected to treat the balance as WHT or else the system will hold it an account receivable balance.
Here are the steps to follow:
Note: I assume you have entered an invoice and received payment on your accounting software.
- Open the General Journal window of your accounting software.
- Under the ‘Account’ column, select ‘Accounting Receivable’ and ‘WHT Receivable’
- Credit the Former and Debit the Latter with amount withheld by the customer
- Select the customer’s name and fill other fields – Date, General Journal No and Memo.
Continue reading “Accounting Treatment For Withholding Tax On Revenue”
Recent search terms:
- treatment of withholding tax (39)
- accounting treatment for withholding tax (38)
- withholding tax accounting treatment (38)
- accounting for withholding tax (35)
- do you recognize withholding tax part of invoice as revenue (17)
- how to account for withholding tax (14)
- accounting for witholding tax (13)
- withholding tax accounting (7)
- accounting for foreign withholding tax (4)
- on peatchterr where is recorde with holding tax show (3)
- witholding tax - where should it appear on trail balance (3)
- accounting for wht (3)
- how to record withholding tax in accounting (3)
- withholding tax treatment (2)
- accounting treatment of witholding tax recoverable (2)
- withholding tax accounting entry (2)
- what is the treatment of witholding tax on payment in ifrs 15 (2)
- withholding tax receivable (2)
- accounting for wht paid (2)
- how to treat withholding tax in accounting (2)
- presentation of withholding tax as per ifrs (2)
- double entry for withholding tax deducted from supplier (2)
- accounting for witholding tax#spf=1594487728938 (1)
- accounting for withholding tax under income tax or operating expense (1)
- withoolding tax treatement (1)