Bookkeeping Solutions by Gina

Thank you all so much for your patience while my website and email are being refreshed behind the scenes. I’m taking this time to create a better, smoother experience for you — and I truly appreciate your support during the update!
On another note: It’s that time of year again where our pages start filling up with what everyone is thankful & grateful for. Here at BKSBG, we are excited to start off this month with what we are grateful for and we have all of you to thank! What are you thankful/grateful for?

Fun fact Friday re Accruals vs Provisions! Been taking lots of workshops lately for CE’s which we highly recommend. 🎉

Accruals vs. Provisions:

Accruals:
- Recognition of expenses or revenues earned but not yet invoiced or paid
- Match revenue and expenses in the same period (matching principle)
- Examples:
- Accrued salaries and wages
- Accrued interest expense
- Accrued rent
- Accounting entry:
Debit (Expense)
Credit (Accrued Expense)

Provisions:
- Recognition of estimated expenses or losses likely to occur
- Based on past experience, probability, or future events
- Examples:
- Provision for bad debts
- Provision for warranty claims
- Provision for income taxes
- Accounting entry:
Debit (Expense)
Credit (Provision)

Key differences:
1. Timing:
Accruals relate to existing transactions,
while provisions anticipate future events.

2. Certainty:
Accruals are more certain,
whereas provisions involve estimation and uncertainty.

3. Purpose:
Accruals match revenue and expenses,
while provisions recognize potential losses or expenses.

4. Accounting treatment:
Accruals are typically expensed immediately,
whereas provisions may be released or adjusted over time.

As for provisions, the likelihood of an expense is important

Here’s a quick overview of financial statements that is a MUST for all businesses to know. You’re welcome! 🤓❤️😬

Financial Statements Cheat Sheet

If you're in business, you MUST understand the 3 Financial Statements.

Here's a quick overview:

Happy Monday, everyone! ❤️

Don’t stress about being behind on your books. Let Bookkeeping Solutions by Gina get you off the hook! From cleanup projects to innovative & ongoing support, we have your back. We offer many services & solutions tailored to the needs of your business. 🛠️📈📊💻💡Stop procrastinating & reach out now to see how we can help!