Category Archives: Bookkeeping

Conversely, crediting an asset or expense account, or debiting a liability, equity, or revenue account, decreases its balance. For reference, the chart below sets out the type, side of the accounting equation (AE), and the normal balance of some typical accounts found within a small business bookkeeping system. One of the fundamental principles in accounting […]

For payback methods, capital budgeting entails needing to be especially careful in forecasting cash flows. Any deviation in an estimate from one year to the next may substantially influence when a company may hit a payback metric, so this method requires slightly more care on timing. In addition, the payback method and discounted cash flow […]

For many firms, the analysis and management of the operating cycle is the key to healthy operations. In our example, if the retailer purchased the inventory on credit with 30-day terms, it had to put up the cash 33 days before it was collected. The working capital cycle formula is days inventory outstanding (DIO) plus […]

Online services may offer one-on-one meetings, but you might have to pay more. If you want a higher level of support in the future, such as chief financial officer or CFO-style services, consider choosing a bookkeeping service that will allow you to upgrade later. Offers less expensive plans for businesses that need tax support and […]

Bear in mind that, in the world of bookkeeping, an account doesn’t refer to an individual bank account. Instead, an account is a record of all financial transactions of a certain type. You might be trying to determine which bank account is best for your business and the difference between debits and credits while juggling […]

Content Keeping proper records for overtime pay What Does Overtime Pay Mean? How to Calculate Time and a Half How to calculate overtime pay for hourly employees Including Regulations for Overtime to Some Exempt Employees Overtime Computation under the 40 Hours System Download QuickBooks today to see how our payroll and other business accounting solutions […]

As mentioned, too, the margin of safety formula is also used in accounting to determine how far a company’s sales could fall before the company becomes unprofitable. Value investors look for stocks that could be undervalued, or trading at prices lower than they should be, to find profitable trading opportunities. The method for instructions 2020 […]

Even perpetual inventory users may wish to perform a physical inventory count from time to time to allow for shrinkage (theft, broken, and obsolete items). Small business owners’ activities are often restricted to the cash register and fairly straightforward accounting procedures. Therefore, small business owners would benefit most from the periodic inventory system. You wouldn’t […]

Content How to manage general and administrative expenses What are General and Administrative Expenses? What Are Some SG&A Typical Expenses? Dictionary SG&A is often referred to as company “overheads,” and is frequently targeted for cost-cutting measures by management teams. G&A expenses are the overhead costs of a business, many of which are fixed or semi-fixed. […]

Content BPM services for CPG companies accounting cpg jobs near Remote Consumer Packaged Goods vs. Durable Goods Drive digital transformation in your strategic planning Know Your Cash’s Past, Present, and Future As new competitors emerge every day, now is the time to focus on cash flow, reevaluate operational processes and arm your Finance & Client […]