Ngwa Cha-ah Associates -NCA

10/05/2025

We’re happy to share that we’ve obtained a new certification: QuickBooks Online Certification Level 2 from Intuit!
Contact us for all your bookkeeping and accounting solutions!
www.ngwacha-ahassociates.com

05/05/2025

We're happy to share that we have obtained a new certification: QuickBooks Online Certification Level 1 from Intuit!

26/04/2025

We are happy to share we have obtained a new certification: Intuit Bookkeeping Certification from Intuit

19/04/2025

ADJUSTING ENTRIES
Adjusting entries reflect the actual exchange of money and modify real-time entries to match revenue and expenses in the period they occur. They include various types of entries. Deferrals remove transactions that should be assigned to a different time period. For example, if a business buys a new lawn mower but hasn't used it yet, none of its value should be attributed to the revenue earned in the current period.

Similarly, if a client pays in advance for a job that hasn't been completed, the revenue should be adjusted to match the actual completion of the job. Or when a business pre-pays for insurance costs, those expenses should also be adjusted to align with the appropriate period. Overall, deferrals ensure that revenues and expenses are properly matched to the relevant time period.

Accruals, on the other hand, are the opposite of deferrals. They are transactions that include future payments or expenses. For example, a business finishes a job and sends the bill to the customer, but the payment hasn't been received yet. In this case, the revenue has been earned during the accounting period and should be matched with the expenses such as labor costs necessary to complete the job.

It's important to record the revenue and expenses in the period they occur, rather than waiting for the customer's payment to be received. Often accruals involve adjusting entries to account for wages or salaries that haven't been paid yet because payroll periods don't line up with the accounting period. Entries can also be made to account for missing or improperly recorded transactions, such as bank fees that are charged on the last day of the month but not yet recorded.

Tax adjustments typically occur once a year. For instance, if the business files a return and receives a tax credit, that credit is recorded as an adjustment. Another form of tax adjustment is depreciation. It is a method to evenly spread out the cost of an asset over its expected lifespan. When an expensive item, like a vehicle purchased for $50,000, is acquired, the full amount is recorded to the books as an asset. However, through the use of depreciation, the expense of the item can be distributed over multiple accounting periods to reflect the item's useful life and to match the expense of the item with the revenue the item is used to produce.

For instance, if the expected life of the vehicle is 5 years, $10,000 would be recognized as an expense each year the vehicle is used until the full value of the vehicle has been expensed. This gradual recognition of expenses reduces the immediate impact on net profit, as only a portion of the cost is recorded as an expense in each period.

Remember, adjustments aim to align revenue and expenses within the accounting period, to provide a more accurate representation of the business's financial health.

For all your accounting and tax needs, do not hesitate to contact us!

15/04/2025

29/01/2025

Chez Ngwa Cha-ah Associates, nous redéfinissons la réussite des entreprises grâce à une expertise de confiance en comptabilité, audit, fiscalité, solutions RH et bien plus encore. 🌍 Découvrez nos services et laissez-nous propulser votre entreprise vers le succès dans un monde en constante évolution. 📈 Votre réussite est notre mission—contactez-nous dès aujourd’hui !

27/01/2025

"At Ngwa Cha-ah Associates, we are redefining business success with trusted expertise in accounting, audit, tax, HR solutions, and more. 🌍 Explore our services and let us empower your business to thrive in today’s dynamic world. 📈 Your success is our mission—contact us today!"

15/01/2025

Title: Financial Statements Year-End Closing Process: A Comprehensive Guide
As the fiscal year draws to a close, businesses worldwide embark on the critical process of year-end financial statement closing. At NgwaCha-ahAssociates, we understand the importance of this undertaking and the complexities it entails. In this blog post, we delve into the intricate details of the financial statements year-end closing process, providing insights and guidance to ensure a seamless transition into the new fiscal year.
Preparation Phase:
Gathering Financial Data: The initial step involves the meticulous collection of financial data from various sources within the organization, including income statements, balance sheets, and cash flow statements.
Reviewing Transactions: Our team conducts a thorough review of all financial transactions to ensure accuracy and compliance with accounting standards and regulatory requirements.
Adjustment Phase:
Accruals and Deferrals: We identify and make necessary adjustments for accrued expenses, deferred revenues, and other items to accurately reflect the financial position of the organization.
Depreciation and Amortization: Calculating depreciation and amortization expenses is essential for accurately valuing assets and determining their impact on financial statements.
Closing Entries:
Revenue Recognition: Proper recognition of revenue is paramount for depicting the true financial performance of the business. Our experts employ industry-best practices to ensure revenue is recognized in accordance with relevant accounting standards.
Expense Allocation: Allocating expenses to the appropriate accounting periods is crucial for maintaining transparency and accountability in financial reporting.
Financial Statement Preparation:
Balance Sheet: We prepare a comprehensive balance sheet that provides stakeholders with a snapshot of the organization's assets, liabilities, and equity at the end of the fiscal year.
Income Statement: Our team generates an income statement that showcases the company's revenues, expenses, and net income for the accounting period.
Cash Flow Statement: A detailed cash flow statement highlights the sources and uses of cash within the organization, offering valuable insights into liquidity and financial health.
Audit and Assurance:
Independent Verification: We offer audit and assurance services to validate the accuracy and reliability of financial statements, providing stakeholders with confidence in the integrity of the reported financial information.
Tax Planning and Advisory:
Tax Compliance: Our tax experts assist businesses in navigating complex tax regulations, optimizing tax strategies, and ensuring compliance with local tax laws.
Tax Provisions: We help clients make accurate tax provisions and estimates, minimizing tax liabilities while maximizing available deductions and credits.
Business Advisory Services:
Strategic Insights: Our team provides strategic business advisory services to help organizations identify opportunities for growth, mitigate risks, and optimize operational efficiency.
Financial Analysis: We conduct in-depth financial analysis to assess performance trends, identify areas for improvement, and formulate actionable strategies for business success.
Professional Education and Coaching:

Continuous Learning: We offer professional education and coaching programs designed to enhance the skills and knowledge of accounting professionals, empowering them to excel in their careers.
Industry Insights: Our training programs cover a wide range of topics, including accounting principles, tax regulations, and financial reporting standards, keeping participants abreast of the latest developments in the industry.
At NgwaCha-ahAssociates, we are committed to providing comprehensive financial solutions tailored to meet the unique needs of our clients. Whether you require assistance with year-end financial statement closing, audit and assurance services, tax planning, business advisory, or professional education, our team of experienced professionals is here to help.
For personalized assistance and expert guidance, reach out to us via email at [email protected], contact us at +237 683 398 161, or visit our website at www.ngwacha-ahassociates.com. Let us partner with you on your journey to financial success!

24/10/2024