What Is A Note Payable? 27 maart 2023 – Posted in: Bookkeeping

It’s usually recorded as ‘Interest Payable’ – a current liability if the interest is due within a year of the balance sheet date. The related interest expense affects the income statement, thereby also impacting the company’s retained earnings and overall equity. The value of getting journal entries correct, especially for significant items like Notes Payable, can’t be overemphasised. Errors in recording these transactions could potentially skew the financial statements and misrepresent a company’s financial health.…

Are Travel Reimbursements Taxable? What You Need to Know 9 maart 2023 – Posted in: Bookkeeping

To create a fair compensation program, you should follow the best practices for mileage reimbursement in your industry and the IRS mileage reimbursement rules for employers. Smart software solutions have become an irreplaceable ally in tracking speed, distance, and the exact time for each location. They enable a well-organized and straightforward system for handling employee mileage reimbursements. This article will help you better understand IRS mileage reimbursement rules, regulations, and rates, enabling you to make…

Explain the Basic Accounting Equation: Understanding the Relationship between Assets, Liabilities, and Equity 27 december 2022 – Posted in: Bookkeeping

Consistent application Financial Forecasting For Startups of the accounting equation enhances financial literacy and transparency across business operations. Another common misconception is that a balanced equation implies a healthy business. While balance is necessary, it doesn’t directly reflect profitability or cash flow. A. Definition of Liabilities The accounting equation is more than just a theoretical tool—it’s the backbone of a company’s balance sheet. Furthermore, qualitative factors such as management efficiency or employee satisfaction are outside…

Imprest Definition, What is Imprest, Advantages of Imprest, and Latest News 12 oktober 2022 – Posted in: Bookkeeping

If the petty cash fund is consistently depleted before the replenishment cycle, the imprest amount may need to be increased. This analysis should align with budget reviews to ensure the imprest system remains cost-effective. Despite being the best best option for conventional petty cash funds, the imprest system does have its drawbacks. The imprest system works by allocating a set amount of cash to an account or ‘float’. This float is a standalone fund that’s…

Weighted Average Shares Outstanding Example How to Calculate 8 augustus 2022 – Posted in: Bookkeeping

Together, these filings equip stakeholders with the tools to evaluate a company’s financial health and equity structure. The number of shares outstanding increases whenever a company undertakes a stock split. Stock splits are usually undertaken to bring the share price of a company within the buying range of retail investors; the increase in the number of outstanding shares also improves liquidity. Definition of Common Stock Outstanding If you’re interested in learning about common stock, you…

Bookkeeping Service CPA Bookkeeper Irvine, CA 28 juli 2022 – Posted in: Bookkeeping

I also received some of the best tax and general business advice from them. Use our secure portal to send over your documents and provide us with access to QuickBooks, Sage, or whatever bookkeeping software you prefer. Our bookkeeping service, based in Irvine, CA aims to bring up and promote women in the accounting industry and we feel that these values set us apart. Accountant (Remote) Additionally, QuickBooks some firms neglect proper documentation, such as…

Contribution Margin Overview, Guide, Fixed Costs, Variable Costs 13 juli 2022 – Posted in: Bookkeeping

Profit, on the other hand, is the amount that remains after both the variable and fixed costs have been fully covered. You might wonder why a company would trade variable costs for fixed costs. One reason might be to meet company goals, such as gaining market share. Other reasons include being a leader in the use of innovation and improving efficiencies. Step 2: Determine Variable Costs Contribution margin and gross margin are both important profitability…

Depreciation: The Depreciation Dilemma: Its Impact on EBIT and Net Income Explained 29 juni 2022 – Posted in: Bookkeeping

To avoid this, companies should ensure that assets are correctly classified and depreciation expense is calculated accordingly. Choosing between MACRS (Modified Accelerated Cost Recovery System) for tax purposes and straight-line for book purposes allows you to optimize tax deductions and financial statements independently. Yes, if significant changes occur, such as technological advancements, a reassessment of an asset’s useful life and depreciation method may be necessary. Depreciation reduces the net book value of an asset over…

Depreciation: How It Affects the Cash Flow and Taxation of Capital Expenditure Projects 28 juni 2022 – Posted in: Bookkeeping

It is usually a very minimal value, as it represents the value of an asset in its least usable form. Sequential file management in VBA is a fundamental concept for developers who need to read from or… In the realm of marketing, understanding the diverse pool of customers is akin to a lifeguard… Predictive analytics in Customer Relationship Management (CRM) is transforming the way businesses… In the world of investing, there are various strategies that…

What is the percentage-of-sales method? 20 juni 2022 – Posted in: Bookkeeping

He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University. By integrating AI into your sales strategy, you can identify underperforming areas, adjust pricing dynamically, and improve customer engagement. AI unifies sales data from various channels, offering a 360-degree view that enables smarter, faster decisions. Higher conversions, stronger customer relationships, and sustainable revenue growth. We hope this article gives you a better understanding…