Credit the FICA tax payable, federal income withholding payable, state income withholding payable, and any other withholdings on employee paychecks. Initial recordings, also known as the originating entry, are the primary entries for payroll accounting. Payroll accounting helps you keep track of employee compensation and other payroll costs. Accounting for payroll gives you an accurate snapshot of your expenses. Payroll liabilities relate to expenses a business owes but hasn’t yet paid. Independent contractors are often…

Conversational AI: What Is It? Guide with Examples & Benefits It harmoniously blends innovations in the field of natural language processing, machine learning, and dialogue management to achieve highly intelligent bots for text and voice channels. By doing so, conversational AI enables computers to understand and respond to user inputs in a way that feels like they are in a conversation with another human. Another major differentiator of conversational AI is its ability to understand…

Unlike outstanding shares issued to shareholders, treasury shares or treasury stock do not grant voting rights or right to dividends. The total outstanding shares must be within the limits authorized by the company’s capital stock as defined in its charter or articles of incorporation. Authorized stock refers to the maximum number of shares a firm is allowed to issue based on the board of directors’ approval. Preferred stockholders generally do not have voting rights, though they have a…

Inventory Temporary Account, or ITA as it is often referred to, is a business account created by companies to track inventory and stock movements. Additionally, due to its temporary nature, this type of account helps businesses safely store and distribute their inventory, while also increasing their financial efficiency. In short, Inventory Temporary Account is an invaluable asset for any business looking to stay ahead in an ever-changing market. The best way for accountants to gauge…

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