Eric Gerard Ruiz, CPA

Recording depreciation begins with choosing a depreciation method and ends with ensuring the total accumulated depreciation shown in your general ledger agrees with your end-of-year accumulated depreciation. It requires debiting depreciation expense and crediting accumulated depreciation, as shown in the journal entry below: However, knowing the journal entry syntax isn’t enough. Your primary concern should…

It’s easy to confuse a sales order (SO) with a purchase order (PO). While these two may have the same information, the PO always comes from the buyer as it’s a formal document requesting a supplier to provide the goods to the buyer. Meanwhile, the SO always comes from the seller, given it’s a formal…

A relevant cost for decision-making is a cost that varies when evaluating two or more alternatives. Relevant costing is used only for short-term and nonroutine decisions. While relevant costs are important, managers should also consider nonquantitative factors in decision-making. In this article, we’ll go over the process of relevant costing and how you can apply…

To help you hire the best candidate for this position, we’ve prepared 12 bookkeeper interview questions that will gauge the candidate’s hard and soft skills, work ethic and behavior, and overall capability in doing the job. We also have a free downloadable bookkeeping assessment test to help you assess the applicant’s technical knowledge of accounting…

GAAP, or generally accepted accounting principles, is a set of rules and standards that accounting professionals follow when preparing financial statements and the related disclosures. In the United States, the Financial Accounting Standards Board (FASB) implements GAAP through its Accounting Standards Codification (ASC), a more detailed set of standards that lists down all the accounting…

Opening Balance Equity is an account created by QuickBooks to offset any beginning balances entered in the chart of accounts. You can avoid an Open Balance Equity account by ensuring the equality of debits and credits of your beginning balances. If not, then QuickBooks will plug the difference to Opening Balance Equity. We’ll discuss how…

Aplos is a cloud-based nonprofit and church accounting suite that helps you track donations, create giving statements, and generate customized reports automatically. Our Aplos review discusses its online giving and tithing features, bank reconciliation, event registration, and a chart of accounts (COA). Prices start at $79 per month, and you can try the platform for…

The high-low method in accounting is the simplest and easiest way to separate mixed costs into their fixed and variable components. By using this method, we observe only the highest and lowest points in the data set with the assumption that all the data have a linear relationship. We use the high-low method accounting formula…

Xero and Wave are among the most popular accounting software brands in today’s industry. In our Xero vs Wave comparison, Xero takes the win because it has inexpensive paid plans, unlimited users, and a diverse set of features that range from simple to advanced accounting. However, Wave’s free plan, Starter, can be a go-to pick…

MarginEdge is a cloud-based application that integrates with QuickBooks Online to provide a powerful restaurant management and accounting software with paperless invoice processing and point-of-sale (POS) integrations. It allows you to obtain a real-time understanding of food and recipe costs, view actual usage vs theoretical usage, and generate a daily controllable profit and loss (P&L)…

They say accounting is a necessary evil. Businesses, regardless of the size, can benefit from accounting as it helps explain how you make money from selling goods and services. All of this starts with bookkeeping, the first two steps of accounting. Bookkeeping is the process that enables businesses to record daily transactions and track inflows…

Drake Tax is a desktop tax preparation software that can be hosted in the cloud for better accessibility and collaboration. Through cloud hosting, it’s easier to outsource tax return preparation without compromising security and client information. The best Drake tax software hosting provider should offer enough cloud storage, reasonable pricing, scalability, and a high uptime…