Rayvat Accounting

One important thing we need to understand is the flow of costs through the manufacturing process . The cost flows move from the raw materials account, to the work in process account, to the finished goods inventory account. These three inventory accounts are all balance sheet accounts. Once a product is sold, the cost is moved to cost of goods sold account, which is on the income statement. In fact, when we flash back to Financial Accounting, here's the journal entry to record the sale of products assuming perpetual inventory. Recall it requires two journal entries to record the sale of goods, because we need to record a revenue entry and an expense entry. The revenue entry is a debit to cash or possibly accounts receivable , and a credit to sales revenue. The expense entry is a debit to cost of goods sold and a credit to inventory, or in this case. finished goods inventory. Once the products have been sold, the cost moves from the balance sheet to the inc...

Introduction :- Accounting is a language that gives information about the financial status of an organization. When we study accounting we are mainly learning this specialized language. By learning this language we can communicate and understand the financial position of any organization. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit. Definition :- Accounting is systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given accounting period, and the value of a firm's assets, liabilities and owners' equity. The American Accounting Association defines accounting as "the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of the information." Three Main Parts Financ...

President Trump said in an Oval Office address Wednesday night that he would allow individuals and businesses to “defer tax payments without interest or penalties,” and he urged Congress to cut payroll taxes as part of a set of measures aimed at providing relief during the coronavirus pandemic. “Using emergency authority, I will be instructing the Treasury Department to defer tax payments, without interest or penalties, for certain individuals and businesses negatively impacted,” he said during a prime-time address. “This action will provide more than $200 billion of additional liquidity to the economy. Finally, I am calling on Congress to provide Americans with immediate payroll tax relief. Hopefully they will consider this very strongly.” The tax deadline falls on the traditional April 15 due date, and although the Treasury and the IRS have not yet issued a formal announcement, they have deferred the date in the past, as when the IRS computer servers could...

The digital marketing platform is fast-paced and it is tough for businesses to keep up with the pace. Most Amazon sellers focus on the marketing side of things to stay ahead of the competition and forget the accounting side of things. This is where our team at Rayvat Accounting comes in handy. Through our accounting experience, we know that accurate  online bookkeeping services  is the foundation for any eCommerce business. We appreciate that you want to build visibility for your store on Amazon and reach your target customers. While this is important, putting off accounting and bookkeeping until the end of the reporting period portends danger for your business. You can only make the best business decisions if you have the correct financial data. With accurate  Accounting for Amazon Sellers  in place, you will feel the pulse of your business at all times. The data you get will guide you in procurement, marketing, credit, tax compliance, and other aspects of you...

A financial statement is not just designed for the business or entrepreneur. Shareholders, employees, management, bankers, suppliers, and other interested stakeholders will peep into the statements or demand the document on a regular basis in order to make crucial decisions. The statements will also be crucial for accurate tax returns preparation and other statutory filings. Several elements must be captured in the statement so that it can serve the intended purpose. Elements of Financial Statements Here are the 5 basic elements of any financial statements Assets :- These are resources owned and controlled by the business for which present or future benefits may flow to the business. When balancing the accounting equation, asset value will be the difference between equity and liabilities. Examples of assets include computers, land, cash, inventories, goodwill, prepaid expenses, and property, among others. Liabilities :- Liabilities are obligations that the business must...

Manufacturing businesses source raw materials and transform these into new products. The process entails the use of labor, machinery, tools, and a variety of raw materials. In this business setup, it is easy for other non-core functions like accounting to be ignored which can lead to debilitating financial consequences. Manufacturing Accounting Unlike a merchandising company that only handles complete items, your business has to deal with inventory valuation and the cost of goods sold. The statement used in a manufacturing business differs from that of any other business as it includes the cost of direct materials and labor and other production overhead. To do this, we open a cost of goods manufactured account that will include: Direct materials : This account reflects all the materials your company sources and uses to make a product. Work in process : This includes goods or products in the production line. The work-in-process inventory tracks the cost of each product ...