Monthly Archives

diciembre 2020
  • Quotes on Addiction, Addiction Recovery

    Part of recovery is transforming your social and home lives. You may have to give up friends who encourage your addictions, and you may need intensive family therapy to work through issues and improve communication with your loved ones. Human beings need to connect with others to thrive, so it’s important to fix the relationships you can, and replace those you can’t.

    Managing addiction requires you to make a thousand different changes in yourself, in your outlook, and in your environment. Finding the perfect quote for what you’re experiencing right now can be like finding medicine—or magic. This is a list of the 44 most inspirational quotes for addiction recovery.

    What to Read

    Change can be difficult, but it is often necessary for growth and progress. As author and motivational speaker, Mel Robbins once said, “Change is not a threat, it’s an opportunity. Moreover, group therapy and support groups can provide a sense of community and camaraderie that is difficult to find elsewhere.

    Many people don’t realize that they have an addiction to a substance until they try to quit. One of the harshest realities is to acknowledge that you have an addiction. While this chapter in your life may be scary, know that you’re not alone.

    The Journey of Recovery

    Well, neither does bathing – that’s why we recommend it daily.” In this sense, motivating oneself through the power of quotes can be an effective daily practice. Finally, former First Lady Michelle Obama once said, “You should never view your challenges as a disadvantage. Self-improvement and personal growth can only come through change and transformation. In the same way, embracing change and making courageous decisions can lead to a life worth living. Furthermore, having a support system in place can provide a sense of belonging and purpose that is essential to recovery.

    To overcome drug or alcohol addiction, we need encouragement and support. When we read powerful and inspiring quotes, they make sense to us. The words resonate with us internally and have a positive impact; they give us the push we need to become our best selves.

  • Debit vs Credit: Whats the Difference?

    Be sure to adjust the inventory account balance to match the ending inventory total. Simply put, COGS accounting is recording journal entries for cost of goods sold in your books. All accounts that normally contain a credit balance will increase in amount when a credit (right column) is added to them, and reduced when a debit (left column) is added to them. The types of accounts to which this rule applies are liabilities, revenues, and equity. The journal entry includes the date, accounts, dollar amounts, and debit and credit entries.

    Assets and expense accounts are increased with a debit and decreased with a credit. Meanwhile, liabilities, revenue, and equity are decreased which transactions affect retained earnings with debit and increased with credit. If the totals don’t balance, you’ll get an error message alerting you to correct the journal entry.

    • Rather than the Inventory account staying dormant as it did with the periodic method, the Inventory account balance is updated for every purchase and sale.
    • The business’s Chart of Accounts helps the firm’s management determine which account is debited and which is credited for each financial transaction.
    • Not to mention, purchases and returns are immediately recorded in your inventory accounts.
    • Accounts Payable account decreased (debit) and Cash account decreased (credit) by $4,020.

    Inventory can be expensive, especially if your business is prone to inventory loss, or inventory shrinkage. Inventory loss can occur if an item or product gets damaged, expires, or is stolen. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

    Debit and Credit Usage

    An entry is needed at the time of the sale in order to reduce the balance in the Inventory account and to increase the balance in the Cost of Goods Sold account. Gather information from your books before recording your COGS journal entries. Collect information ahead of time, such as your beginning inventory balance, purchased inventory costs, overhead costs (e.g., delivery fees), and ending inventory count. Your income statement includes your business’s cost of goods sold. All accounts that normally contain a debit balance will increase in amount when a debit (left column) is added to them, and reduced when a credit (right column) is added to them.

    You’ll notice that the function of debits and credits are the exact opposite of one another. Before getting into the differences between debit vs. credit accounting, it’s important to understand that they actually work together. On the other hand, not having enough inventory could mean missed opportunities for sales and revenue growth. This highlights the importance of effective procurement strategies that ensure optimal levels of inventory are maintained at all times. There are several types of inventory management systems businesses can adopt based on their needs.

    While it might seem like debits and credits are reversed in banking, they are used the same way—at least from the bank’s perspective. Here are some examples to help illustrate how debits and credits work for a small business. QuickBooks uses the weighted average cost to determine the value of your inventory and the amount debited to COGS when you sell inventory.

    • This means that merchandise inventory is a debit and not a credit.
    • Transfer the inventory cost of goods sold to the operating account using a cost of goods sold transaction.
    • For some types of businesses, merchandise inventory can be the single largest asset on the balance sheet.
    • Inventory reconciliation is one of the uses of merchandise inventory calculations.
    • Office supplies is an expense account on the income statement, so you would debit it for $750.

    For example, the inventory cycle for your company could be 12 days in the ordering phase, 35 days as work in progress, and 20 days in finished goods and delivery.

    Transaction Upon Selling

    Debits increase asset or expense accounts and decrease liability accounts, while credits do the opposite. As your business grows, recording these transactions can become more complicated, but it is crucial to do it correctly to maintain balanced books and track your company’s growth. The asset accounts are on the balance sheet and the expense accounts are on the income statement. Bookkeepers and accountants use debits and credits to balance each recorded financial transaction for certain accounts on the company’s balance sheet and income statement.

    How are accounts affected by debit and credit?

    Let’s say you have a beginning balance in your Inventory account of $4,000. If you don’t account for your cost of goods sold, your books and financial statements will be inaccurate. When you increase assets, the change in the account is a debit, because something must be due for that increase (the price of the asset). Cash is typically the account that includes the most accounting activity. When you need to post a new entry, decide if the transaction impacts cash. Equity accounts record the claims of the owners of the business/entity to the assets of that business/entity.[28]
    Capital, retained earnings, drawings, common stock, accumulated funds, etc.

    Under this approach, assets and liabilities are not formally tracked, which means that no balance sheet can be constructed. This approach can work well for a small business that cannot afford a full-time bookkeeper. A double entry accounting system requires a thorough understanding of debits and credits. In double-entry accounting, CR is a notation for “credit” and DR is a notation for debit. The account Inventory Change is an income statement account that when combined with the amount in the Purchases account will result in the cost of goods sold.

    For example, when a retailer purchases merchandise, the retailer debits its Inventory account for the cost. Rather than the Inventory account staying dormant as it did with the periodic method, the Inventory account balance is updated for every purchase and sale. The complete accounting equation based on the modern approach is very easy to remember if you focus on Assets, Expenses, Costs, Dividends (highlighted in chart). All those account types increase with debits or left side entries. Conversely, a decrease to any of those accounts is a credit or right side entry. On the other hand, increases in revenue, liability or equity accounts are credits or right side entries, and decreases are left side entries or debits.

    How Are Debits and Credits Used?

    The beginning merchandise inventory is the value of inventory at the beginning of the accounting period, before acquiring any more inventory items or selling any existing inventory. Hence, the beginning inventory for the current period is simply calculated as the ending merchandise inventory value from the previous period. The last entry in the table below shows a bookkeeping journal entry to record the inventory as it leaves work-in-process and moves to finished goods, ready for sale. To record the transaction, debit your Inventory account and credit your Cash account.

    As earlier said asset and expense accounts increase with a debit entry and decrease with a credit entry. Therefore, since merchandise inventory is an asset, it will increase with a debit and decrease with a credit. This means that merchandise inventory is a debit and not a credit. Recording purchases will be entered as a debit to the merchandise inventory account and as a credit to the cash or accounts payable account.

    If you buy $100 in raw materials to manufacture your product, you would debit your raw materials inventory and credit your accounts payable. Once that $100 of raw material is moved to the work-in-process phase, the work-in-process inventory account is debited and the raw material inventory account is credited. The journal entry to increase inventory is a debit to Inventory and a credit to Cash. If a business uses the purchase account, then the entry is to debit the Purchase account and credit Cash. At the end of a period, the Purchase account is zeroed out with the balance moving into Inventory. Increases could also be due to sales returns and in that situation, the journal entry involving inventory is to debit Inventory and credit Cost of Goods Sold.

    Your use of credit, including traditional loans and credit cards, impacts your business credit score. Monitor your company’s credit score, and try to develop sufficient cash inflows to operate your business and avoid using credit. After a physical inventory is completed, record the adjusting entries to the general ledger.

    To determine how to classify an account into one of the five elements, the definitions of the five account types must be fully understood. Liabilities, conversely, would include items that are obligations of the company (i.e. loans, accounts payable, mortgages, debts). Assets are items the company owns that can be sold or used to make products.

  • Church Accounting vs For Profit Accounting

    accounting for churches

    You can also track your donations—how much you received, spent, and have left. Then, run financial reports to see exactly how business is doing. Check out our accounting and bookkeeping services specifically for church organizations to learn about how we can manage your church’s accounts and provide financial insights to help you succeed. Church accounting is a unique form of financial management that helps church professionals like yours to gain insider knowledge about the financial health and position of the organization. Plus, you’ll be able to make plans within the scope of financial possibility at your organization while maintaining as high of an impact as possible. Because churches function as nonprofit organizations, they’ll need to compile a statement of functional expenses, a financial statement unnecessary for for-profits.

    • PowerChurch Plus is a comprehensive church management software that provides tools for membership, donation, and event management, as well as accounting, reporting, and communication features.
    • Next, make a list of all of the actions your church must perform on a monthly and yearly basis to keep track of its finances, report how donations are used and file taxes.
    • If you find its features to be inadequate for your needs, we recommend IconCMO as a cost-effective paid option.
    • Churches and nonprofits stand to lose benefits when they purchase an accounting program that is not designed specifically for them.

    Churches, like nonprofits, rely on the generosity of their supporters to fund their organizations. Therefore, the polite (and necessary) thing to do is to respect these supporters’ wishes for how they want their contributions to be allocated at your organization. The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers’ terms of use. Cathedral Administration and Finance Association (CAFA)
    Body created to encourage the sharing of best practice and excellent standards of administration and financial management within English Anglican Cathedrals. Please note that this is a very basic chart of accounts and the actual might include many more accounts depending on the complexity and size of the church.

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    Learn more about our integrations (you can connect with 2000+ applications and more!). Churches that use freelancers for accounting, repair, cleaning, entertainment, or other purposes must file Form 1099. Any time your church pays accounting for churches a freelancer $600 or more, you must file this with the IRS and send a copy to the freelancer. If you are a larger church with significant staff and budgets, hiring an accountant for a staff position may be a better option.

    accounting for churches

    AccountEdge Pro has inventory tracking and sales tax calculations if you sell anything through the church, like Bibles, t-shirts, or event tickets. The interface is user-friendly and straightforward, making it easy for churches to manage their information. Integrations include a host of tools, including Emburse Nexonia, Baker Tilly SaaS Intelligence, FloQast, APS Online, Yooz Accounts Payable Automation, RadiusOne, Workforce, and QCommission. Integrations include PayPal, Microsoft Outlook, MailChimp, HubSpot CRM, and others. You can access hundreds of more connections using Zapier, though it requires a separate subscription (free and paid options). Even when restrictions aren’t placed on the contributions, they should all be reinvested back into making your organization better and more impactful.

    Mistake #3 — Not Maintaining Designated Funds

    If your organization needs to hire someone to manage the books, you might want to consider outsourcing instead. Avoiding new hires can cut down on administrative costs, and it’ll reduce the budget dedicated to church accounting software and training. Churches are exempt from paying income tax while businesses do pay these taxes. Your church wants to make the world a better place by investing time, resources, and funds into the community, so the government chooses to credit organizations like yours with certain benefits. While churches don’t pay income tax, they do pay property and state taxes.

    Zoho’s paid plans range from $15 to $240 per month (if billed annually) and add features such as workflow automation, project-expense tracking, tax figuring, in-depth analytics and customizable reports. If you are looking for a software package with a free forever plan you can use to manage your church’s bookkeeping needs, you may want to consider ZipBooks. ZipBooks is a cloud-based accounting software that provides small business owners with easy-to-use financial management tools.