Archive for category: Bookkeeping

Specialized editions of QuickBooks Desktop are also available for various businesses, but they may be less advanced or feature-rich than QuickBooks Online. QuickBooks Online allows you to prioritize your employees and make a better collaborative environment, especially in today’s remote working world. This means that several users can access the same data, facilitating improved cooperation and decision-making. If Targets are not an issue, the next area to consider is inventory. QuickBooks Desktop uses an Average Costing method to track inventory. QuickBooks Online, on the other hand, uses first-in, first-out .

When you move to QBO, you will be learning a new accounting platform. In QuickBooks Desktop if you pay a bill before the bill date, you may see a negative balance in your Accounts Payable account on cash basis reports. If you receive a payment on an invoice dated before the invoice date, you may see a negative balance in your Accounts Receivable account on cash basis reports. If your existing QuickBooks Desktop is a mess, then choosing to convert the file to QBO will not fix your problems.

• The total targets are located on the left side of the screen.
• If youlog insuccessfully andexport data out of QBO, I suggestclearing the browsing historyof your regular web browser.
• However, it isn't advisable to create employee paychecks.

One of the big differences we noticed is how QuickBooks Desktop calculates cash basis reports compared to QBO. Anyone with Quickbooks Pro 2020 not using Intuit payroll is probably best advised to keep using what you have as long as you can. If you are using Intuit payroll, you can cancel it and move to Payroll Mate or one of the others you can find in this really helpful thread. Client still using QB Pro 2016, and I've read in this thread of someone still using 2013. Pattysue, you should put your "review" of QBO online every place you can find software reviews.

What are the Advantages of Converting from QuickBooks Desktop to Online?

This will empty previously-browsed data that might have caused the issue. Another thing you can try is to use other supported browsers like Google Chrome and Firefox. Once your internet is available, you can check this article aboutcreating invoicesand email them to your customers. If you need to create and email invoices to your client, you'll need an internet connection to do the task. Then, follow the rest of the on-screen instructions to complete the exporting process.

• They will ask you why you dont want to go to QBO, I told them because I dont …end of discussion.
• The robust QuickBooks Online support center offers online chat assistance to businesses.
• In addition, may I know if you've seen any error messages while navigating the system, like server errors?
• Bulk import, export, and deletion can be performed with simply one-click.

QuickBooks Online provides owners and other users the ability to access their books from any computer. Users can also access QBO via mobile using the QuickBooks app. The app makes sending receipts, receiving payments, and checking financial information a breeze. I would like to export/import the complete data file, not just particular files, balances or lists. It is the most convenient accounting software where you can access your account any time and anywhere. In this tutorial, you'll learn to connect your credit card to QuickBooks Online and import credit card transactions.

QuickBooks Desktop Pro

After selecting the company file, copy the data file there, which takes some time. After selecting Export company file to QuickBooks online after login to the new account. The system will ask you if you want to export your existing inventory. Several useful third-party apps are compatible with QuickBooks Online, allowing you to save time and effort through automation and streamlined workflows. Connecting your bank, payment processor, or e-commerce platform to QuickBooks Online lets you import transactions instantly.

Because it is hosted in the cloud, QuickBooks Online can be accessed from any computer or mobile device with an internet connection. This feature can come in handy if numerous employees require access to QuickBooks from different places. On the other hand, QuickBooks Desktop must be downloaded and installed locally on your computer and can then be accessed exclusively from that system. With QuickBooks Point of Sale, retailers can manage sales, inventory, and customer data in a centralized location. Mac-specific functionality, such as the ability to import contacts from macOS Contacts and synchronize financial data with iCal.

Additionally, accounting basics Online allows you to collaborate with other users, so everyone can access the same information in real-time. The primary reason companies are making the switch is because QuickBooks Online is more affordable than Desktop, with a lower monthly subscription. Katana ERP bridges the gap when converting QuickBooks Desktop to Online, which is missing some Desktop features. Get essential manufacturing tools and the ability to keep your books balanced. Using this article, you can prepare your business for a painless transition as you start converting QuickBooks Desktop to Online. We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries.

Method 3: How to Import QuickBooks Desktop to QuickBooks Online

If you convert your QuickBooks Desktop file to QBO using the tool inside of QuickBooks Desktop, you need to be aware of this difference. Those I've looked at are either unimpressive or comparable in cost or barely cheaper than the new QB pricing. The online version of that program is $49 a month or $490 a year if prepaid. The desktop version is free–and that's the thing that bothers me and frankly scares me away. Furthermore, Enterprise is a different version that has more complex operations and functionalities including advanced pricing and inventory tracking. Based on your business model, Pro Plus or Premier Plus may become your top choice since the regular line is no longer offered.

Make a huge impact on your business with the right customer relationship management solution. Amaxra helps you build a holistic CRM environment that connects all your applications. In the end, QuickBooks Online takes advantage of technology to be more fluent between business and everyday life in a meaningful and user-friendly way. The interactive nature of QuickBooks Online with the many tools available to support business growth allows your company to thrive.

Each edition of QuickBooks Desktop, from Pro to Premier to Enterprise, is tailored to a particular business's demands with its own features and capabilities. Since it can work with various applications, QuickBooks Desktop is a flexible choice for handling a company's money. Amaxra can configure and enhance your business’s cloud with add-ons that give you more functionality and security. Amaxra augments your current IT environment with additional security focused on managed detection and response. Get the best cloud security through Microsoft from Amaxra.

Select the Back-Up Company option and then the Create Local Backup option. Once in the local backup option, you’ll want to choose where to save the QuickBooks Desktop company backup file. The system will automatically generate a test backup to ensure that the process is working correctly. QuickBooks offers two versions for both personal and business usage, namely, QuickBooks Desktop and Online. While the desktop version is a locally-installed software program, QuickBooks Online is a cloud-based system featuring 650+ integrations. Moreover, QuickBooks Online offers some amazing features that the desktop version lacks.

• Bill Payments done by credit card shift to bill payment in your particular QuickBooks Online. • Discounts received as early payments of bills from vendors shift as vendor credits. Such discounts are implied to the outstanding balance of a vendor. • All the constituents of assemblies copy for the purchased transactions. • The information behind the particular transactions does not change. • QuickBooks Online copies the present year’s paycheck data in the form of lump sums.

Industry-Specific Options

Since you’ve already created your QuickBooks Online company, click Move Now. If you don’t see the “Export Company File to QuickBooks Online” option, you’ll need to download the most recent QuickBooks Desktop update. Select Update QuickBooks from the Help menu and follow the instructions. Once the update is complete, export the company file as shown above.

Ensure the success of your next project by augmenting your existing team with Amaxra’s world-class experts. Support says they are working on a way to make this work with Chrome, but tax season is already upon us. However, if you're still getting the error, it would be best to get in touch with our QuickBooks support team to further assist the issue. Let me provide some basic troubleshooting steps to fix this issue.

• For security purposes, bank account notes and number will not move QuickBooks Online. QuickBooks Online has an extra account type called Detail Type. It will shift your account and allocate them detail types. They are integrated to the outstanding balance of a customer. • You will be required to unlink your particular payment account from your given Desktop file and then relink that account to QuickBooks Online once you have converted.

Since you've already created your QuickBooks Online company, click Move Now. The previous QuickBooks Desktop version has no option to export specific data unless you download each data individually from QuickBooks Desktop. For instance, if you wish to export your customers only, you must navigate to the Customer Center to export your customer list. The company file will be saved with the “.OE” extension. It would be very beneficial to retrieve the file if you save it on your desktop.

This site contains information on double-entry bookkeeping, basic accounting, credit control, business planning, etc. Bookkeeping is only a part of accounting while accounting is the complete process that includes Bookkeeping, preparation of Financial Statements, analysis of data, etc. Bookkeepers deal with daily transactions while accountants https://www.harlemworldmagazine.com/retail-accounting-why-is-it-essential-for-inventory-management/ analyze the data to prepare Financial Statements. Analytix uses proprietary technology and systems designed to expedite project delivery processes and ensure accuracy across all our services. This includes traditional accounting and bookkeeping functions, as well as online and cloud-based accounting and bookkeeping practices.

So, the more times there’s a sale or spend, the more often the ledger will be posted. An accountant needs strong and accurate bookkeeping to do their work. They look at all of the financial details of a company so they can make larger decisions about how the business operates.

The accounting cycle explained

OpenLearn works with other organisations by providing free courses and resources that support our mission of opening up educational opportunities to more people in more places. Making the decision to study real estate bookkeeping can be a big step, which is why you’ll want a trusted University. We’ve pioneered distance learning for over 50 years, bringing university to you wherever you are so you can fit study around your life.

The thing to figure out first is whether you need an in-house bookkeeper or can do with an outsourced one. Typically, businesses hire in-house financial specialists when there’s a lot of payroll and invoices to process. If you’re a small firm that doesn’t do a great deal of payroll, you can start by outsourcing bookkeeping services to someone who would update your books, ideally every month.

Free Bookkeeping Accounting

It’s understandable, considering everyone needs a break from work to recharge their batteries and… Volha is an experienced copywriter with 10+ years experience writing for the information technology and services industry and a 5+ years sole proprietorship background. Passionate about all things tech, she is especially interested in topics lying at the confluence of business and technology. A lot of U.S. bookkeepers get the American Institute of Professional Bookkeepers certification. It proves that the bookkeeper has signed the AIPB’s Code of Ethics and has successfully fulfilled its certification standards. A bookkeeper is also limited by licensing which a Certified Public Accountant has for the issuing of audited statements.

As an accountant, you may have to crunch numbers, but those are not the only skills needed. It is important to possess sharp logic skills and big-picture problem-solving abilities, as well. While bookkeepers make sure the small pieces fit properly into place, accountants use those small pieces to draw much more significant and broader conclusions. Bookkeepers are commonly responsible for recording journal entries and conducting bank reconciliations. A bookkeeper must be able to shift focus easily and catch tiny, hidden mistakes in a budget or invoice. They often bookkeepers work a few jobs for various clients if they work as a consultant.

They'll also provide onboarding assistance and customization of essential system components. Some bookkeeping services can provide a full suite of bookkeeping, accounting and tax services. Examples include bookkeeping journal entries, bookkeeping ledger, bookkeeping reconciliation and bookkeeping trial balance. Sunrise by Lendio makes it easy to connect to your bank and import your business expenses and income automatically.

• You can find services for as little as $20 per month, while others run thousands per month.
• Botkeeper is a young company, and so growing pains are painful.
• Dashboards which is populated from financial and non-financial sources as well give a better insight into options.

Its features include automation of tasks, Gusto payroll processing, balance sheet production, income statements, accuracy checks and transaction databases. While there are tons of accounting software on the internet, Botkeeper distinguished themselves by providing “AI” bookkeeping for small businesses and startups. In addition, they provide it at a fraction of the cost of a staff accountant. With Botkeeper, you get a full suite of services and features in their platform. Founded in 2015, Botkeeper is an automated computer-based service meant to replace manual labor at bookkeeping firms. The virtual bookkeeper supports your accounting practice through machine learning and artificial intelligence .

Botkeeper Review: Features, Pricing & Alternatives 2023

They are not looking to work with top 50 firms at the moment. By the same token, sole proprietors are likely not a good fit for them either. Qonto is an easy business banking solution for entrepreneurs and startups. Accounts payable include all of the company's short-term debts or obligations. For example, if a restaurant owes money to a food or beverage company, those items are part of the inventory, and thus part of its trade payables.

Zoho Books is a straightforward accounting solution for small Shopify businesses. We think it’s the best for small Shopify businesses because of its seamless integration with Shopify, the whole Zoho ecosystem, and inventory tracking features. Tons of businesses want accounting software to aid their business goals. What is difficult is finding out whether or not a piece of software you choose is right for you. We have compiled a list of other accounting solutions that our reviewers voted best overall compared to botkeeper. Based on thousands of datapoints, you can see how botkeeper matches up to their competitors, and find the best fit for your business.

What happens if a top performing player has to get into the logistics & transport related transactions & had to pull of the Olympics games, as he couldn’t focus. Similarly Botkeeper could prove to be handy for businesses to not let them loose the focus from core business. Botkeeper is a great combination of human intelligence and automation capacity of ai & machine learning. Check Botkeeper review, pros & cons, alternatives and competitors, ratings & reviews.

Write a review

Accounting firms can ignore the pricing advertised on the website as this is retail direct-to-consumer pricing. Firms are looking at a 20-day time-to-value when onboarding to the platform according to Enrico. This means that by day 20 your firm will start to see work coming off of your team’s plate.

An increased focus on customer satisfaction and experience surveys will be beneficial for the Software for Bookkeepers market for market research services. As competition grows, businesses are being compelled to come up with innovative tactics to keep and draw in clients. In order to provide high-quality products or services, many organizations continuously solicit customer input in order to attain this goal.

Our 2022 Transparency Report has landed

cash flow from operating activities is an affordable accounting software for businesses of all sizes. The machine learning engine and artificial intelligence facilitate automated bookkeeping, which includes comprehensive financial reports, account reconciliations, and categorization of transactions. The company's team of specialists counter-checks the data, ensuring tax compliance and error-free accounting. In our evaluation of the best online bookkeeping services, we determined Botkeeper to be the best for accounting firms needing to outsource client bookkeeping.

Organizations that conduct market research engage in processes where human capital is the main input. They make available the knowledge and skills of their personnel, frequently on an assignment basis, where a person or group is in charge of providing services to the client. Market research companies provide data, data analysis, and consumer analysis depending on the demands of the end user through primary and secondary research.

Yes, that’s right, the system offers you automated support via email and live chatbots, all of which are incredibly intelligent and extremely responsive. Customer support is one thing you’re bound to enjoy here, asBotkeepercomes with multi-level specialized support to assist you with your accounting, bookkeeping and technical issues. Thankfully, Botkeeper does its part by applying 256-bit encryption to protect user data. This, for your information, is pretty much the same type of encryption that’s typically employed in online payment processing. So, you can bet it’ll keep your data secure during storage and transmission.

• Their Senior Accountants will begin to review your data and handle any complex accounting issues.
• With this, you’re able to make sound business and financial decisions while Botkeeper ensures data integrity.
• Not anymore though, because as it turns out, recent advancements in tech are changing how we are handling our finances.
• Potential and capabilities for revenue recognition are not up to a high standard, which is a basic ask.

For anyone who needs an automated accounting software to help them manage their books and stay informed on their financial performance. Botkeeper integrates with Shopify, QuickBooks, and other popular SaaS tools. In addition, you’re able to get great customer support with Botkeeper. Botkeeper does not directly provide tax and consulting services, but it provides a searchable list of its accounting partner ecosystem, which can be filtered by partners that provide tax services.

Alternatives To Botkeeper

A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered. Botkeeper boasts of a wide range of pre-built integrations.

Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. For additional features, these were elements that fell into the “nice-to-have” category that not all software providers offered, either as part of their regular plan or as a paid add-on.

Quickly export financial statements such as cash flow statements, balance sheets, and income statements. An accounting software meant to provide various accounting services to small scale businesses with… An accounting software focused on providing expert accounting services to small scale businesses…. Xero is an award-winning online accounting software for small scale businesses. Fixed asset management is the process of tracking and maintaining an organization’s physical assets and equipment.

https://1investing.in/ then accesses your information to make entries, tracks and schedules revenue and deferred expenses, accounts for payroll, reconciles bank accounts, and sends invoices. QuickBooks Live is our top pick for online bookkeeping services because it offers cleanup bookkeeping services that vary based on your company’s needs for your first month. Subsequent months are for upkeep and costs $200 per month. This service is ideal for business owners who want to get their bookkeeping in order but don’t have the time or resources to do it themselves.

We have supported companies ranging from new startups to large, multi-national publicly traded companies, in maintaining compliance with the terms of their Federal Grant Awards. As your Bookkeeper, we can generate a budget and financial projections allowing you to Bookkeeping Garland properly forecast and plan. Ray Smith, CPA has the unparalleled expertise to help with Sales Tax, Payroll Setup and Integration of your existing systems or help modernize your bookkeeping systems with the correct checks and balances set forth by Best Practices.

For more information, see the SimplyHired Privacy Policy. Mathews is excellent, friendly, professional and is available anytime. I am extremely satisfied with his service and I strongly recommend Mathews to any one looking for a great professional service.

accounting Jobs in Garland, TX

Spencer H. Jones, CPA is a local Richardson CPA firm working with business owners throughout the area to ensure that they always know where they stand and are prepared for the future. We have clients in Plano, Garland, Frisco, Allen and surrounding communities. Maximizing your indirect rate will ensure that your awarded funds go as far as possible to support your technology development and commercialization efforts. Our team assists clients throughout the process of determining eligibility for a rate negotiation; preparing the rate negotiation package; and communicating with auditors from Granting Agencies.

• The average Bookkeeper salary in Garland, TX is $41,746 as of August 29, 2022, but the range typically falls between $37,104 and $46,416.
• Best CPA in Texas, highly recommended best customer service .they respond to problem and solve it .GREAT service.
• We have supported companies ranging from new startups to large, multi-national publicly traded companies, in maintaining compliance with the terms of their Federal Grant Awards.
• Once you engage with them, you need not look around for your financial stuff.
• When we meet, we’ll take time to learn about your business before we tell you about ours.
• My goal is to educate business owners about their financial situation so they can make better informed decisions to empower their company.

Our reports include background information on the company, the subject business interest, financial condition, earning capacity, comparison to peers and projected economic conditions. Get an accurate and insightful business valuation in Shreveport, LA by contacting Chad M Garland, CPA today. This is so nice place, I recommend all to visit this place. Sonali did my taxes, it was quick and I am happy with their services.so good place.. Best CPA in Texas, highly recommended best customer service .they respond to problem and solve it .GREAT service. The CPA firm has been doing my business accounting and other audit related work for last 8 years. Highly recommend this CPA, Mr. Matthew is a genuine CPA, he is very professional and cares about his clients.

Thelemann Bookkeeping & Tax Service

The Accounting Assistant III prepares records, verifies and distributes financial information related to operations and accounting systems. Managing the entire Accounting function for JSX with accuracy and customer experience at the forefront of their mind. 3-5 years of full-cycle, in-house payroll. It is engaged in the construction and sale of high quality homes designed principally for the entry-level and first time move-up markets.

Not only is Ray Smith your bookkeeper but he is your trusted CPA affording us the amazing opportunity to provide the best tax planning based on accurate bookkeeping and reporting. Small businesses face a number of challenges in today’s economic climate, but staying on top of your financial functions doesn’t have to be one of them.

Browse Related Job Categories With Bookkeeper

This position is full-time, Monday – Friday. It may be necessary, given the business need, to work occasional overtime or weekends. With access to 1M+ customer reviews and the pros’ work history, you’ll have all the info you need to make a hire. The best way to conduct an appointment during the COVID-19 pandemic is virtually, as this will ensure that you remain within theCDC's social distancing guidelines.

With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target. Our comprehensive Set-Up for New Grant Awardees ensures that companies receiving their first Federal Award get off to a strong start in establishing the corporate infrastructure needed to properly manage their grant funding. This set-up phase includes developing a customized Accounting Policies & Procedures Manual, establishing a Project Cost Accounting System, and implementing a Timekeeping System to support the company’s grant compliance obligations.

Bookkeeper Pay Difference by Location

 The majority of the revenues consist of desirable, year-round bookkeeping/accounting services, which make up more than 80% of the total revenues.  Currently operated from a home office with no long-term lease to consider, this practice could be easily transitioned to any office or home office in or around the area.  It is the perfect size and opportunity for any accountant ready to start a practice or an existing firm in the area seeking a profitable addition. EGC is a nationally recognized leader in providing grant accounting https://accounting-services.net/ & compliance services to companies who have received Federal Grants and Contracts, through SBIR/STTR and other government programs. Accountants do not automatically have a Certified Public Accountant designation unless they have passed the Uniform CPA Examination and received the proper license. CPAs are also eligible to represent clients before the IRS if audit support is required, while a non-CPA accountant is not. Academic background, years in the field and professional reputation all can affect an accountant’s rates.

• They guided me to take the steps necessary to grow my business.
• We cannot speak highly enough about the knowledgeable and professional service we received.
• Grant funded companies may be audited at any time, and there are certain trigger points when audits are required (for example, receiving $750K or more in Federal Government funding during your company’s fiscal year).
• Accountants are financial professionals who have received an accounting degree from a four-year university or college.
• Not only is Ray Smith your bookkeeper but he is your trusted CPA affording us the amazing opportunity to provide the best tax planning based on accurate bookkeeping and reporting.

Show bioRebekiah has taught college accounting and has a master's in both management and business. Firm profitability and financial leverage showed a positive significant effect on firm value, while, firm size is insignificant. The efficiency of this relationship is mostly affected by the individuals and opportunistic interests held by each party. This created an agency problem and costs, which includes nonalignment of the agents’ interest with owners' interest (Nyberg et al., 2010). By appointing agents, the owners expect the agents to act in their interest, but the interests of the principals and the agents are not always aligned . Common stock with a high dividend yield and few profitable investment opportunities. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares.

Now that you're familiar with some of the reasons why earnings management occurs, let's look at some of the legal techniques that are used. Though there are a number of these techniques, for this lesson, we're only going to look at the top five. The proxy for measuring firm value in this study is the average share price. This has been documented in previous studies such as Ajekwe and Ibiamke , Bao and Bao , Chen et al. , De Jong et al. and Yu et al. . The terms income tax expense and income tax provision are used interchangeably. Formally called a consolidated earnings statement, it covers a period of time such as a quarter or a year. Financial Intelligence takes you through all the financial statements and financial jargon giving you the confidence to understand what it all means and why it matters.

Share this document

Consumption smoothing allows them to control their spending so that they can meet their various obligations when income is fluctuating. To achieve consumption smoothing, most people plan and try to stick to a budget so that they can pay their bills when they come due. Consumption smoothing can also be used in economics to explain consumers’ responses to increasing prices or inflation. If a household recognizes an increase in the price of certain goods and services throughout the economy, they may smooth out consumption by spending less in other areas. The idea of consumption smoothing has been reinforced by a few economists over the years. He developed the life-cycle hypothesis, which explains how individuals keep their consumption steady over time by borrowing when income is low and saving when income is high.

This is a tax planning strategy of arranging for income to be transferred to family members who are in lower tax brackets than the one earning the income, thus reducing taxes. Even though attribution rules limit income splitting, there are still a number of legitimate ways to do so, such as through the use of spousal RRSPs. Extraordinary items, and the cumulative effect of changes in accounting principle. Of current-period originations and reversals of temporary differences. Extraordinary gains and losses that should be recorded in the period).

Income smoothing and the cost of debt

Often times, the company has set its own internal goals, such as departmental budgeting, and wants to be sure to meet those goals. No department wants to be the one to blow the proposed budget, so earnings management techniques are used to balance this out. Leverage is negatively significant to firm value; this depicts that increase in https://accounting-services.net/ debt capital, reduces firm value. This finding is consistent with Bao and Bao , Chen et al. , Feihn and Struck , Huang et al. , and Makela which documented negative relationship between financial leverage and firm value. On the other hand, Cvetanoska and Kerekes ; Demerjian et al., ; Yang and Zhu , and Yu et al. found contrary results.

• More so, this suggests that smoothen practices are seen to signal private information by managers to investors, thus, income smoothing is perceived from the information view rather than the garbling view.
• If income was expected to be lower for the year, they could employ the strategy in reverse; laying off workers or reducing bonuses to reduce expenses.
• There are many reasons why a company would choose to engage in income smoothing.
• Since the decision of when revenue was earned and expenses incurred can vary based on individual opinion, this earnings management technique, like the others, is legal.
• Looking for training on the income statement, balance sheet, and statement of cash flows?
• Then when earnings are higher, the corporation will increase spending for personnel and get caught up on the maintenance it had put off.

Whiles one business organization is using strategic means and proper accounting methods for its income smoothing, another may be using dubious or unscrupulous means for hedging its income. Restructuring CostsRestructuring Cost is the one-time expense incurred by the company in the process of reorganizing its business operations. It is done to improve the long term profitability and working efficiency. This expenditure is treated as the non-operating expenses in the financial statements.

Net income

This implies that volatility seem to enhance investment activity in the Nigerian market, thus, improving stock returns. Thus, capital market pressure to report smooth earnings that meet performance benchmarks is one key reason for managers to engage in smoothing that resulted from manipulations (Graham et al., 2005).

After all, the financial statements are what potential investors and creditors look at when they make the decision whether or not to lend the company money or to become an investor. Purpose – This study aims at investigating whether income smoothing helps to reduce volatility in reported earnings and which firms are more inclined to be engaged in income smoothing. Earnings management has a negative effect on earnings quality, and Income Smoothing Definition may weaken the credibility of financial reporting. Furthermore, in a 1998 speech Securities and Exchange Commission chairman Arthur Levitt called earnings management "widespread". Despite its pervasiveness, the complexity of accounting rules can make earnings management difficult for individual investors to detect. Generally, the result of this study reveals the perception of investors on the value of Nigerian listed firms.

Income fund

Literature reveals that investors react negatively to unstable reported earnings. The profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales. Difference between revenues and expenses) of a corporation over some period of time. Though an income smoothing practice being used by a company may be legal, it may not be ethical. Accounting has its general guidelines such as neutrality, full disclosure, comparability, consistency etc.

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life to account for declines in value over time. FREE INVESTMENT BANKING COURSELearn the foundation of Investment banking, financial modeling, valuations and more.

Underwriting income

In high market volatility, investors' prefer stable earnings as this gives assurance to investors on the financial position of the firms (Chen et al., 2020; Cvetanovska and Kerekes, 2015; Habib et al., 2011; Jung et al., 2020; Takasu and Nakano, 2012). This practice is especially common in publicly-held companies, where investors are more likely to bid up the price of shares in a company that presents a reliable and predictable earnings stream over time. Of course, if its income smoothing practices are later made known to the investment community, they will probably drive down the price of its stock. Revenue recognition – In this earnings management technique, the timing of when revenue is recognized is manipulated. Since the decision of when revenue was earned and expenses incurred can vary based on individual opinion, this earnings management technique, like the others, is legal.

Furthermore, one of the factors that explain firm value is market risk. This concept of market risk is reflected in the volatility of the market. Chung and Chuwonganant studied the relationship between sensitivity of stock returns and market volatility and found a negative shock on stock returns in high volatility. As such, Pereira and Zhang posit that investors adapt their trading strategy to the volatility in the market.

It has called on standard-setters to make changes to accounting standards to improve financial statement transparency, and has called for increased oversight over the financial reporting process. The SEC has also pressed charges against the management of firms involved in fraudulent earnings management. Beidleman defined income smoothing as an attempt by management to reduce abnormal variations in earnings to the extent allowed under sound accounting and management principles. Income smoothing is a form of earnings management (Agrawal and Chatterjee, 2015; Demerjian et al., 2020; Tabassum et al., 2015). Managers either use their discretion to alter earnings by different accounting choices or change operations for the sake of earnings targets .