Category: Bookkeeping

In turn this led to the banks’ increased use of charges for exceeding overdraft limits as a means of generating their required level of profitability. In most jurisdictions, transacting in cash may be acceptable. While paying and receiving cash is the primary source of compensation for most transactions, some may prefer other options. For most…

Consider our review of FreshBooks and our review of Xero to learn about two leading accounting software options. Behavior refers to the change in the cost with respect to the change in the volume of the output. Daniel S. Welytok, JD, LLM, is a partner https://www.wave-accounting.net/ in the business practice group of Whyte Hirschboeck Dudek…

Adweek is the leading source of news and insight serving the brand marketing ecosystem. The commercial showed a shy-looking woman with black hair, thick-rimmed glasses, and a red flannel cradling a white cat. She gave smile before it cut to a woman in a formal blue dress with a red TurboTax pin who offered a…

By offering discounts primarily on these profitable products, businesses can maintain a healthy overall profit margin, thus ensuring they don’t drift too close to their breakeven point. In the long run, each company should keep its operating costs under control. Lowering the business costs either by renegotiating the rents or purchase prices may positively impact…

In any business, the Cost of Goods Sold (COGS) is an essential indicator of success, and FIFO is a common method of determining COGS. Companies use it to match the costs of goods sold with the revenue generated from the sale of those goods. The First In, First Out (FIFO) inventory management method is a…

It is an important number for any business because it tells management how much reduction in revenue will result in break-even. Generating additional revenue should not make a difference to your fixed costs. As their name suggests, fixed costs (also known as overheads) remain the same from one billing cycle to the next. Learn financial statement…

Another important fact to note stems from the fact that total assets are equal to total liabilities and capital at any given time. The only difference is that the balance is ascertained after each entry and is written in the debit or credit column of the account. The method used for posting and balancing in…

Another important fact to note stems from the fact that total assets are equal to total liabilities and capital at any given time. The only difference is that the balance is ascertained after each entry and is written in the debit or credit column of the account. The method used for posting and balancing in…

But when a company divests an asset, the transaction is considered cash-in for calculating cash from investing. Schedule a demo to spot the main differences between the cash flow forecast and cash flow statement. As the months pass, you should expect to see that your projections aren’t quite matching up with your actual results. That…

The statement of retained earnings is either created as a separate document or appended with the income statement and balance sheet. It is prepared to benefit existing and prospective external stakeholders, such as investors and lenders. Some accountants don’t prepare a separate statement of retained earnings for a company. Instead, they include the information on…