If you harvest and sell crops in a period different from when you planted them, you can deduct the cost of producing the crop in the same accounting year you realize and recognize its income. For example, long-term liabilities may be incorrectly classified as short-term, distorting financial ratios like the current ratio. When examining financial […]

Preparing financial statements for a nonprofit organization is similar to preparing them for a for-profit, as you will be gathering income and expense information. But how that information is presented is slightly different, reflecting the goals of transparency and accountability. Let’s review what needs to happen to create these financials and how they tell the […]

The accounting period were the revenue is actually earned will then be understated in terms of profit. At the end of the second quarter of 2020, Morningstar had $287 million in unearned revenue, up from $250 million from the prior-year end. The company classifies the revenue as a short-term liability, meaning it expects the amount to […]

QuickBooks Self-Employed is QuickBooks’ freelance-specific bookkeeping software. It starts at $15 a month and offers features like mileage tracking, basic invoicing, and receipt scanning. In contrast, QuickBooks Online was built for freelancers, sole proprietors, and small-business owners with employees. It has more expansive accounting features than QuickBooks Self-Employed, including report generation and business income tracking, […]