CPA Ouma Miruka’s Post

HOW TO HANDLE ACCOUNTS PAYABLE (A/P) LIKE A PRO IN BOOKKEEPING. (All rights reserved under CPA Ouma Miruka forte). Accounts payable (AP) refers to the money a company owes to its suppliers for goods and services received but not yet paid for. It is recorded as a current liability on the balance sheet. 1.INVOICE PROCESSING. --Receipt & Verification: Invoices are matched with purchase orders and receiving reports. Approval: Verified invoices are approved for payment. 2.PAYMENT TERMS. --Conditions under which suppliers expect payment, often with discounts for early payment (e.g., 2/10, net 30). 3.RECORDING TRANSACTIONS. --Approved invoices increase the A/P balance and record the expense or asset. 4.PAYMENT PROCESSING. --Payments are made via checks, EFT, or credit cards, ensuring timely payments to avoid late fees. 5.RECONCILIATION. --Regularly matching A/P ledger with supplier statements for accuracy. #Bookkeeper #CPAMiruka #AskMiruka #QuickBooksOnlineGuru.

5-CRUCIAL FINANCIAL REPORTS EVERY BOOKKEEPER MUST GENERATE WEEKLY/MONTHLY. (All rights reserved under CPA Ouma Miruka forte) 1. Profit & Loss Statement(Income Statement). ---See how your revenue and expenses stack up. 2.Balance Sheet(Statement of financial position). -- A snapshot of your assets, liabilities, and equity. 3.Cash Flow Statement. --Monitor where your cash is coming from and where it’s going. 4.Accounts Receivable. --Track who owes you and ensure your business gets paid on time. 5.Budget vs. Actuals. --Compare what you planned to achieve with your results. ~~Staying on top of these reports will give a clearer picture of the business’s financial health and helps to plan for business success! #CPAMiruka #AskMIRUKA #QuickBooks #RemoteBookkeeper #TopBookkeeper

10 REASONS WHY BOOKKEEPING IS A MUST FOR ANY BUSINESS. (All rights reserved under CPA Ouma Miruka forte). 1.Bookkeeping helps to maintain accurate financial records. 2.It helps in budgeting and forecasts. 3.Assists in making informed decisions. 4.It helps the business to ensure compliance with Tax laws. 5.It provides clear picture of a business' financial health/performance. 6.It protects the business against audits. 7.Bookkeeping prepares business for Tax season. 8.Financial issues become manageable and predictable. 9.Bookkeeping helps business to stay and remain competitive in the market. 10.Bookkeeping ensures variety of tasks are cared for. #Bookkeeper #CPAMiruka #QuickBooksOnlineExpert #RemoteBookkeeper #AskMiruka #RealEsateBookkeeper

HOW TO RECORD ACCOUNTS RECEIVABLE(A/R) BY IFRS PRINCIPLES. (All rights reserved under CPA Ouma Miruka forte). --Accounts receivable (AR) represent amounts a company expects to collect from customers for goods or services delivered on credit. Under International Financial Reporting Standards (IFRS), the accounting for accounts receivable involves specific principles and guidelines to ensure accurate and consistent financial reporting. Here’s a detailed explanation of how accounts receivable are recorded and managed under IFRS principles: Recognition and Measurement 1. Initial Recognition: --Accounts receivable are initially recognized at the amount of consideration that the entity expects to receive in exchange for the goods or services provided. This amount is typically the invoice amount, adjusted for any trade discounts or rebates. 2. Subsequent Measurement: --After initial recognition, accounts receivable are measured at amortized cost using the effective interest method. However, for short-term receivables with no stated interest rate, the receivable is usually measured at the original invoice amount if the effect of discounting is immaterial. Impairment of Accounts Receivable 3. Impairment Assessment: --IFRS 9 (Financial Instruments) introduces the "Expected Credit Loss" (ECL) model for assessing impairment of financial assets, including accounts receivable. This model requires the estimation of credit losses over the life of the receivable. Entities must recognize a loss allowance for expected credit losses at each reporting date. The ECL model incorporates forward-looking information and considers a range of possible outcomes. 4. Three-Stage Approach: --Stage 1: For receivables where there has been no significant increase in credit risk since initial recognition, entities recognize a loss allowance equal to 12-month ECLs. --Stage 2: For receivables with a significant increase in credit risk but not credit-impaired, entities recognize a loss allowance equal to lifetime ECLs. --Stage 3: For receivables that are credit-impaired, entities recognize a loss allowance equal to lifetime ECLs, and interest revenue is calculated based on the net carrying amount. #Bookkeeper #CPAMiruka #AskMiruka #QuickBooksOnline

Monthly Accounts to be Closed. *Accounts that Need to be Closed Monthly. 1. Revenue Accounts: All revenue accounts should be closed to reset their balances. 2. Expense Accounts: Close all expense accounts to transfer their balances to the Income Summary. 3. Income Summary: Transfer the net balance to Retained Earnings after revenue and expense accounts 4. Dividend Accounts: Close dividend accounts to ensure no residual balance carries over to the next period. 5. Temporary Accounts: Clear all temporary accounts to prepare them for new entries in the next month. 6. Accrued Expenses and Revenue: Adjust and close accrued entries to match the actual revenues and ex 7. Depreciation Accounts: Close any monthly depreciation accounts for assets to update financial statements. 8. Inventory Adjustments: Adjust and close any inventory-related accounts based on physical inventory. #Aya_Mahfouz #الباشمحاسبه

I have successfully completed Tally accounting certification from kalptaru computer classes in 2022. I got the knowledge about tally with GST.

HOW TO SYSTEMATICALLY RECORD ACCOUNTS RECEIVABLE(AR) USING IFRS PPRINCIPLES/RULE LIKE AN EXPERT. (All rights reserved under CPA Ouma Miruka forte). DEFINITION: --Accounts receivable (AR) represent amounts a company expects to collect from customers for goods or services delivered on credit. Under International Financial Reporting Standards (IFRS), the accounting for accounts receivable involves specific principles and guidelines to ensure accurate and consistent financial reporting. --Here’s a detailed explanation of how accounts receivable are recorded and managed under IFRS principles: RECOGNITION AND MEASUREMENT. 1.INITIAL RECOGNITION. --Accounts receivable are initially recognized at the amount of consideration that the entity expects to receive in exchange for the goods or services provided. This amount is typically the invoice amount, adjusted for any trade discounts or rebates. 2.SUBSEQUENT MEASUREMENT. --After initial recognition, accounts receivable are measured at amortized cost using the effective interest method. However, for short-term receivables with no stated interest rate, the receivable is usually measured at the original invoice amount if the effect of discounting is immaterial. IMPAIRMENT OF ACCOUNTS RECEIVABLE. 3.IMPAIRMENT ASSESSMENT. --IFRS 9 (Financial Instruments) introduces the "Expected Credit Loss" (ECL) model for assessing impairment of financial assets, including accounts receivable. This model requires the estimation of credit losses over the life of the receivable. --Entities MUST recognize a loss allowance for expected credit losses at each reporting date. The ECL model incorporates forward-looking information and considers a range of possible outcomes. 4.THE THREE-STAGE APPROACH. STAGE 1: --For receivables where there has been no significant increase in credit risk since initial recognition, entities recognize a loss allowance equal to 12-month ECLs. STAGE 2: --For receivables with a significant increase in credit risk but not credit-impaired, entities recognize a loss allowance equal to lifetime ECLs. STAGE 3: --For receivables that are credit-impaired, entities recognize a loss allowance equal to lifetime ECLs, and interest revenue is calculated based on the net carrying amount. CPA Ouma Miruka  Ronaldo of Intuit Accounting. #RealEstateAccounting #TheBestAccountant #QuickBooksOnlineExpert #AccountingTutor #AskMIRUKA #CPAMiruka  #RemoteBookkeeper #AccountingTheLanguageOfBusiness

Companies and Allied Matters Act (CAMA) 2020 views on record-keeping. CAMA 2020 opinion on record-keeping is simple. That every company should keep an accounting record of their business. The accounting record should contain the following: 1. Daily entries of all sums received and spent. 2. Why the money was received and spent. 3. The company’s record of assets and liabilities. 4. The record must be kept at the company's registered office. 5. They must be open to inspection by the company's officers at all times. 6. The records must be kept for a period of six (6) years from the date on which they were made. CAMA 2020 stand on record keeping is very clear and simple. Keep a record of your business transactions. Follow us Ngozi Okika for more business and tax tips. Tell me, why haven’t you started keeping a record of your business transactions? #bookkeeping #recordkeeping #quickbooksonline #sageone #tax

'The Importance Of Understanding Different Economies and Why One Should Know About Them ?' We conclude our series of articles on 'Different Economies' with the above title. Kindly read and share you thoughts and opinions on today's article. We would love to hear your views and thoughts. #namibia #windhoek #accounting #bookkeeping https://lnkd.in/d2RmKMRt

🚀 TRUSU Accounting Club's Word of the Week: June 2024 Throughout June, we've explored essential accounting terms. Here’s a quick recap of our words of the week: 1. Share Premium 📈 The amount received by a company over and above the par value of its shares. Share premium is a significant component of a company's equity, reflecting the additional capital investors are willing to pay. 2. Retained Earnings 💰 The cumulative amount of net income retained by a company after distributing dividends to shareholders. Retained earnings are crucial for reinvesting in the business and financing future growth. 3. Non-Current Liabilities 📉 Obligations not due for payment within one year, such as long-term debt and lease obligations. Non-current liabilities provide insights into a company's long-term financial commitments and stability. 4. Lease Liability 🏢 The present value of future lease payments a lessee is obligated to make. Lease liability is important for understanding a company’s leasing obligations and financial position under lease accounting standards. Stay tuned for more insightful terms as we continue to deepen our understanding of the accounting world. 🌟 #TRUSUAC #WordOfTheWeek #Accounting #SharePremium #RetainedEarnings #NonCurrentLiabilities #LeaseLiability #ProfessionalGrowth #FinancialLiteracy