Eric Gerard Ruiz, CPA

The best church accounting software should provide detailed transaction information and reports to key stakeholders, such as donors and the board of directors. Many churches can benefit from church management software that’s integrated with good accounting software. We evaluated the six best church accounting programs for churches: : Best overall church accounting software : Best…

A petty cash log (also called a petty cash register) is the official record of all petty cash transactions. The petty cash custodian is in charge of maintaining the petty cash log for all petty cash transactions that were taken out of the fund. We have prepared a free downloadable petty cash log template that…

Since N/P is debt, the borrower incurs interest expense that must be paid together with the principal amount at maturity date. N/P ranges from short-term loans for solving cash flow problems to long-term loans for purchasing machinery or even buildings. In this article, we discuss the purpose of N/P, the interest computation, and the journal…

The main objective of accounts payable internal controls is to reduce the risk of error and fraud that may proliferate in the accounting information system if not detected, prevented, and corrected on time. Having controls in place helps the A/P team deliver on their responsibilities and maintain independence in reviewing and approving all A/P transactions….

The A/P workflow starts immediately after goods have been received. The A/P clerk will first gather all the necessary documents and enter them into the accounting system. They will then review the documents to ensure the accuracy and correctness of the information. After review and approval, they will prepare the payment request and forward it…

Knowing what revenue recognition is and its importance in financial reporting helps businesses make informed decisions and have a clear picture of business performance and financial health. To help you recognize revenue properly, we’ll borrow the five-step model from ASC 606, which determines the GAAP for revenue recognition. Even if your business isn’t required to comply…

Bad debts are uncollectible customer invoices that have already been recorded as revenue. The correct bad debt expense journal entry depends on which method you’re using. Direct method: The journal entry debits bad debt expense and credits accounts receivable (A/R). Allowance method: The journal entry debits bad debt expense and credits allowance for bad debts….

What are closing entries in accounting? Closing entries are journal entries that reduce the balances of all revenue and expense accounts to zero. Since income statement accounts are temporary accounts, their balances don’t transfer from one accounting period to another. Instead, they always start each period at a zero balance by debiting revenue and crediting…

Inventory reserves are estimates for inventory losses due to physical deterioration, obsolescence, theft, and other unforeseen causes—they are not the actual cost of inventory deemed worthless. Businesses using either the last in, first out (LIFO) method or retail inventory method and complying with the US GAAP should make appropriate inventory reserves. The inventory reserve account…

A pro forma invoice and a commercial invoice look almost identical, but a pro forma invoice is only informational while a commercial invoice is a legally enforceable request for payment. The most clear difference between a commercial invoice vs pro forma invoice is the title printed on the document—pro forma invoice titles must state “Pro…

A pro forma invoice (also proforma invoice) is a preliminary invoice sent to the buyer before the delivery of goods. It includes all the essential information of an invoice—except that the prices and amounts stated are quoted values only. It is not a legal contract between the buyer and the seller and is subject to…

An invoice number is a unique and sequential number assigned to each invoice document. Invoice numbers can be purely numeric, such as 10021, or alphanumeric, such as INV-10021. It allows businesses and customers to refer to a particular invoice easily when multiple invoices exist, making it much easier to match invoices with payments. For small…