Category: Bookkeeping

Regular reconciliation ensures your contra accounts match actual transactions. This helps you avoid errors, detect fraud, and stay compliant with GAAP (Generally Accepted Accounting Principles). A contra-equity account reduces the total value of your company’s equity. Each year, $9,000 would be recorded in the accumulated depreciation account, reducing the book value of the truck on…

Your AGI is used to determine the amount of income tax you owe and certain credits for which you’re eligible. Your modified AGI is used to determine eligibility for other tax issues such as deducting contributions from a traditional IRA and eligibility to contribute to a Roth IRA. Taxable income is the portion of your…