Відео

Hello, thank you for reaching out with questions. Yes, I am an active CPA since 2001. You can learn more about me on my about page and my blog myconciergecpa.com/about/ Best, Juliet

Hi, that is a great question. A lot of FP&A roles are filled by finance majors not necessarily accountants, but in my experience, the ones I have seen excel in their roles and their careers grow faster are the ones with an accounting background. I believe it is because although the roles is focused on data analytics such as budgeting, cash flow analysis, variance analysis, forecasting, costing in some industries, it is important for anyone working with the data to understand how the data got there. A good grasp of basic accounting is crucial, debits and credits, accrual vs cash basis, etc. I would focus on all the basics and for more advance accounting topics, revenue recognition standards, leases, investments and consolidations. And of course, a very good understanding on how to read and interpret financial statements. The more you know the better off you will be. Best of luck!

@@ConciergeCPA thank you so much :)

Hi, Thank you for your comment. That is correct, most if not all accounting softwares, will post the revenue and expense accounts balances to retained earnings at the end of the accounting year automatically. If you drill into the detail of the retained earnings account, you should see the system-generated journal entries. if that is the case, then you don't need to manually create the journal entries, you just need to understand what the system did. Also, the dividends account, might or might not close to retained earnings, I believe it depends on the accounting software set up. You can always look in the account detail and create the manual journal entry if needed. Hope this answers your question.

Hi, thank you for your question. My next video will be released in a few days and it is about closing entries. Per your question, I think you will find it helpful. The closing entries are part of step 8 in the accounting cycle, both cost of goods sold and sales are temporary accounts that are closed against retained earnings during the 8th step of the accounting cycle. For example, if the company has 100 in sales during the year, the closing entry would be, debit sales for 100 and credit retained earnings. This closing entry reset the revenue account to zero and transfers the balance to retained earnings. The entry for the COGS is, credit COGS and debit retained earnings. This credit and debit to Retained earnings, transfers the net income to the retained earnings account. This will all be covered in my next video! thanks

Excellent!

Thanks, please make a video about " qualities of useful accounting information"

@@DekBashir-y3s Thank you for your request. I will add it to my plan.

Hi, I see there is a lot of talk and concern around this topic, but after being in the industry for over 20 years, my view is that automation will take over some tasks, perhaps shrink the headcount in the accounting department, but only in the entry level positions, specifically around accounts payable, but for the most part, I think automation will only make accountants more efficient, freeing up valuable time to focus on more value added activities. Forbes magazine has published several articles on this topic and they are all very favorable towards the future careers of accountants. In fact, there are fewer people entering the profession, demand for good accounting skills is higher than supply in the recent years. This is a great recent article (if you can access it),. www.forbes.com/sites/kateduchene/2024/08/02/the-cpa-shortage-isnt-going-away-but-ai-and-automation-can-help/. Best of luck in whatever you decide!

well, as an accountant I can tell you that automation has pretty much made this video already outdated. I forgot their even was an accounting cycle (learned it in school) because all you have to do is match the transactions in quickbooks (which actually learns the pattern that you are categorizing them in) and then it automatically creates the financial statements for you.

Hi, great question. I made several videos on equity as there is so much that goes into equity that I didn't want to make one very long video covering all there is to know about equity. I made one video covering the most common accounts that make up equity and provided an example of a transaction for each. Take a look at this video, treasury shares is towards the end and the video has topic chapters if you want to skip directly to it. ua-cam.com/video/yFvWprqmHLc/v-deo.htmlsi=VJqzgflQPMbFwsFk. To answer your question, treasury shares is an equity account, not an asset. It directly reduces the equity as the shares are no longer outstanding and owned by owners. Thanks!

Thanks so much.

Thank you! I am so glad to hear you find the videos helpful

Thank you so much for you kind words. I am glad to hear you find my videos helpful. I hope to make many more!

Hello, thank you for your comment. Correct, I am using the retained earnings account in my example bypassing the income summary account. if it helps you , and to be consistent with textbooks, you can use the income summary account and then immediately transfer it to the retained earnings account. Also, not to cause confusion, retained earnings is cumulative and a permanent account, the income summary account is a temporary account and resets to zero once the balances are transferred to the retained earnings account. (so they are not the same) I hope I answered your questions.

Hello, thank you for your comment. Every unit sold after the breakeven point will contribute to the profit of the business by its contribution margin. That is the selling price minus the variable cost to produce. This will be the same with each additional unit sold as long as there is capacity, meaning there is no need to incur additional fixed costs.

Hello, thank you for your comment. Perhaps this article will help clear things up, myconciergecpa.com/debits-and-credits-in-accounting/. Also, before you understand debits and credits, you might want to get a basic understanding of the accounting equation and the concept of the double entry system. I have videos on those. Best of luck!

@@ConciergeCPA so nice of you, I'm following QuickBooks dude too, I'll give a thorough read to the article and will try wrap my head around.

Hi, from reading your question I understand the source of your confusion. Lets start with your first statement, where you mention DEA=LER, this is the expanded accounting equation after moving Dividends and Expenses over to the left hand side. The only reason to ever use this expanded equation is to remember when a debit increases the account and when a "credit increases an account. For the DEA=LER DEA are increased by debits, and LER are increased by credits. if we return to the official accounting equation, expenses are a component of the equity accounts. For your second point, expenses are under equity and are increased by debits, that is a correct statement, however, when expenses increase, equity decreases. I think the best way to understand this is to know the accounts under equity, understand how this accounts affect equity as a whole., and understand the process of closing the income and expenses accounts to retained earnings (a component of equity. Also, in the example at 5:27, the plus sign is correct on the expenses, the accounting equation must remain balance, in this example, cash goes down, expenses go up, but as I explained above, when these accounts are closed against retained earnings, equity goes down. I have three videos on equity, one of them is on retained earnings. I really think, those videos will help you. Check them out and do reach out if you still have more questions. Hope this helps.

hi, you can reach me at julietconciergecpa@gmail.com, or post your question here and I will try my best to answer it. I have a blog, not much there yet, but I have two articles that might help, myconciergecpa.com/debits-and-credits-in-accounting/

take a look, ua-cam.com/video/cv5JgFs_pWM/v-deo.htmlsi=k_FlmQpYKigkerTO, hope you find it helpful

Excellent! Glad it was helpful.

Thank you!

Hello, I am happy to further explain. You are correct, both Cash and Accounts Receivable are on the "Debit" side meaning they carry a normal debit balance, they are both assets and are increased by debits. That also means that these accounts are decreased by credits. In the example, the company is collecting cash from a customer. The cash collected increases the cash (a debit to cash), which means the accounts receivable account must decrease, therefore you credit accounts receivable. Remember, before this event, the cash collection, the sale to the customer was recorded by debiting accounts receivable and crediting sales. That initial debit increased the accounts receivable balance, the cash collection then credits accounts receivable to cancel out the balance the customer owes to the company. Hope this helps clarify the example. Thanks!

Hi thank you for reaching out. Although it is very hard to tell what the future will look like with the introduction of AI, I can honestly tell you I am not afraid of automation taking over the accounting profession. I have been a CPA for over 20 years and as you grow in the profession the more complex the issues you will be dealing with become. Same reason why you can always be challenged as you grow (or not, it is really up to you), and why I believe AI cannot fully replace human decision making. There are many different career paths for accountants, you can do audit, general accounting, taxes, controller positions, Internal Audit, CFO. That is my take on the matter and I think accounting is a wonderful career. It is so flexible (not what most think). You can do a lot with an accounting degree. Wish you the best of luck in your future career and any path you choose. Best wishes.

Thank you! I am so glad the video is helpful.

Thank you for your feedback. I am so glad the video was helpful! 😃

@@ConciergeCPAthanks for your video 🎉

Thank you for your feedback!

Hello, I would like to help you. Are you referring to "Tax Deducted at Source"? would you like an example of a JE?

Thank you!

Thank you so much for your feedback.

Glad it was helpful!

You are so welcome!

Hi, that is a great question. I will try to explain it as clearly as possible. I see how the name of the account "accumulated depreciation" can be misleading. The balance is in fact the accumulation of expenses taken over time. Specifically, depreciation expense associated with the usage of the equipment. You are right to say, that the balance is made of the depreciation expense, however, the account is not an expense account. The debit goes to the expense account (depreciation expense) which then is listed in the income statement, the credit goes to the accumulated depreciation account, which is actually a balance sheet account. The correct name for this type of account is a "contra asset account". If you get your asset (equipment account), which has a natural debit balance, and net it with the contra asset account (accumulated depreciation), you wil get the net book value of the asset after taking into account all the depreciation expense recognized over the assets life. What you are doing in essence is spreading the cost of the asset over time. But, instead of crediting the equipment account directly, we use a contra asset account (accumulated depreciation). I hope this helps. Let me know if you still have any questions. And thank you for reaching out, I will eventually have several videos on the various depreciation methods. Thanks!

Thanks for taking the time to explain this. I’m new at this, so I’m trying to apply the D-E-A-L-E-R method to balance my JE’s. What comes to mind is the creation of Accounts, what to name them, and how they interact with one another, so as to create the Balancing effect on the Balance Sheet,.. and not violate any accounting principles in the process. Thanks again.

yes, that is correct, you debit tax expense and you credit owner's equity. Best of luck!

@@ConciergeCPA Thank you.

Thank you and yes, I will add to my list of topics.

When we see the title 😲😲😲😲😲😲😲😲 _________________________ After watching for 2 minutes 😴🙄🙄😇😇😇😇🧐

In my opinion, more attention should be paid to subtitles, transitions, effects and B-Roll. I mean do subtitles, transitions, effects and B-Roll properly.

I wholeheartedly agree with "yes".