Category: Bookkeeping

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The primary financial statements include the income statement, balance sheet, and cash flow statement. Most small business owners will not create an entry for this type of liability because employees are paid shortly after the pay period. However, it’s important business owners monitor their accounts around payday to make sure there’s enough money for payroll …

But finding the organizational spot where decision costs are minimal is only part of the battle. You still must https://www.bookstime.com/ deal with the fact that those imbued with decision authority are invariably motivated by their own sets of personal and professional goals—some of which inevitably are inconsistent with those of the organization. “If I know …

There are some accounts you may not need, like health insurance if it’s not offered and others that are required, like federal income tax payable, to comply with payroll laws. When it comes to mastering these tools, bookkeepers often undergo formal training and continuous professional development. Popular software programs such as QuickBooks and Microsoft Excel …

You can also record contra revenue within the sales account, but this means that it will be buried within the total amount of revenue reported, so that management cannot easily determine the amount of contra revenue. If your company has minimal contra revenue activity, it is acceptable to record these transactions within the revenue account. …

By outsourcing complex finance tasks, you can dedicate your time and resources to your core business activities instead. Processes like accounting and supply chain finance management require tons of expertise and experience. That’s why many companies prefer to outsource them to a dedicated financial institution instead of putting inexperienced in-house staff on the job. To …

The greater the contribution margin (CM) of each product, the more profitable the company is going to be, with more cash available to meet other expenses — all else being equal. The insights derived post-analysis can determine the optimal pricing per product based on the implied incremental impact that each potential adjustment could have on …

Accrual accounting is always required for companies that carry inventory or make sales on credit, regardless of the company size or revenue. This method allows the current and future cash inflows or outflows to be combined to give a more accurate picture of a company’s current and long-term finances. Moreover, if a business is enormous, …

Accounts receivable financing, also known as receivables factoring, could be a good way to access capital today to fuel growth or fund other business initiatives without borrowing. Available to startups as well as established companies, Riviera Finance provides funding within 24 hours after invoices are verified. It offers non-recourse factoring and cash advance amounts up …

Available for sale securities are securities that are available for sale (literally!) and have a readily available market price. At the end of each financial year, companies need to value the available for sale securities. Any gains/losses due to the change in valuation are not included in the Income Statement but are reflected in the …