Category : Accounting

Understanding your profit and loss statement-EBITDA -Earnings before interest tax depreciation and amortization

Posted on: Jul 24, 2017

The single most important financial figure you should be looking at each month…

Have you heard of the word ‘EBITDA’? If no, that is ok. We totally understand that as business owners and entrepreneurs, we are busy with our main line of business...

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Under what item is legal expenses on a balance sheet?

Posted on: Oct 4, 2017


Legal unpaid obligations due within a year will be classified as current liability. Usually, they appear as accrued legal liability or similar.

Also, many times if the expenses were incurred during the financial period but not yet billed, they are classified as accrued legal liab...

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6 accounting best practices for New Business Owners.

Posted on: Oct 30, 2017

As a new business owner, you have to wear so many hats and manage various functions of your business. One such function is accounting and maintaining your books. By following a healthy practice of regularly recording and storing relevant records for valid business purchases, you will find it lot ...

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What is US GAAP and why its important for your business?

Posted on: Mar 4, 2018


What is US GAAP - Generally accepted accounting principles?


US GAAP- Generall accepted accounting principles are set of accounting standards/principles adopted by the professional accounting industry.

These accounting standards, rules are establi...

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US GAAP rules for software costs (external sale)

Posted on: Oct 7, 2018

US GAAP- Computer costs and accounting treatment

All computer costs incurred in creating software product are R&D costs. All Research and development costs are expensed.

Technological feasability is an important c...

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US GAAP Software developed for internal use

Posted on: Oct 7, 2018

Software developed for internal use

Software developed for internal use can be capitalized if there is no plan to market the software externally.

Admin, overhead and training costs need to be expensed. 

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