Bookkeeping

If investors see that a company has high current liabilities, they might think this is a sign of poor cash flow and not invest in it. However, some companies have high levels of inventory or accounts receivable as well as other current assets. That can make up for their immense level of current liabilities. Investors should be aware of what these numbers mean before making any investment decisions based on them. Understanding your company’s current liabilities is an essential part…

One of the main financial statements (along with the statement of comprehensive income, balance sheet, statement of cash flows, and statement of stockholders’ equity). The income statement is also referred to as the profit and loss statement, P&L, statement of income, and the statement of operations. The income statement reports the revenues, gains, expenses, losses, net income and other totals for the period of time shown in the heading of the statement. If a company’s stock is publicly traded, earnings…

Calculating your business turnover is simply a matter of adding up all of your sales over a given period and deducting any trade discounts and VAT. If we continue with our example, the turnover rate of 25% would be nothing if you are in manufacturing or retail. However, if you are in education, you need to investigate the reasons behind the high turnover rate. When employees leave an organization of their own will, typically to work in a different organization…

If that’s the case, http://www.belgrade2017.org/en/news/slobodan-brankovic-about-organization-of-eich-2017 will likely live up to your expectations. Its invoicing and online payment acceptance features can help you get paid while its reporting and money management tools ensure you stay on track for tax season and future business growth. You can connect your bank account to Wave, which will automatically import and match your banking transactions with your recorded income and expenses. There is also an option to manually upload a bank statement into the application…

An independent contractor is someone who is self-employed. You generally do not have to withhold or pay any taxes on payments made to an independent contractor. A 0.9% Additional Medicare Tax may apply to you if your net earnings from self-employment exceed one of the following threshold amounts (based on your filing status). You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. With IRS e-file, your refund will be issued in half…

Horizontal analysis compares a company’s financial data over time, typically for two or more periods. By comparing data from different periods, statement of account a business can identify trends and patterns that may not be apparent when looking at data from a single period. Using both types together often gives the most comprehensive view of a company’s performance over time. To further understand the application, let’s consider another example involving net income over three years. Insert a column to the…

To keep this from being an issue, base the estimates on recent actual history, adjusted for your best estimate of production activity in the near future. Because the predetermined overhead rate is based on estimates, calculating it with incomplete or inaccurate data can also skew the budgets, reports, and forecasts created using it. It’s a simple step where budgeted/estimated cost is divided with the level of activity calculated in the third stage. It’s called predetermined because both of the figures…

Pricing starts at $19 a month for the Lite plan, which includes five billable clients and unlimited expense tracking. The Plus plan at $33 per month increases that to 50 clients while the Premium plan at $60 per month and Select plan, which has custom pricing, offer unlimited billable clients. The Lite, Plus and Premium plans are available at 75% off for the first four months during the current promotion. Checking in on your account statements is a vitally important…

Here are 8 features you should look for when preparing to invest in an e billing software system for your practice. This process should include guidelines for who will review and follow up on these issues, and when. For example, with unpaid bills, you can use Clio Manage to send automated bill reminders. What is LEDES format and what are its benefits for legal e-billing? This stage can include automatic validation checks, powered by AI, that screen for common errors…

In a perpetual inventory system, a subsidiary ledger is kept for every inventory item. If you do this manually, you need to have a 10-column subsidiary ledger book for every item of inventory. QuickBooks Online is our best small business accounting software and uses the perpetual inventory system to record inventory purchases and sales in the Inventory account. Time Value of Money The Meta company is a trading company that purchases and sells a single product –  product X. The…