Bookkeeping

If you see a balance is abnormally large or small, something may have been recorded incorrectly. But before financial statements are generated, the business needs to summarize the financial history of the accounting period and generate the numbers that are...

Second, if you don’t have inventory management software or a B2B ecommerce platform, look into getting it. Inventory turnover ratio is one of the most important inventory KPI. It’s not a stretch to say that, for most companies, the movement...

It shows a business has consistently generated profits and retained a good portion of those earnings. It also indicates that a company has more funds to reinvest back into the future growth of the business. Yes, having high retained earnings...

It is the difference between the actual activity level and the break-even activity level. We can calculate the margin of safety for sales, revenue, or in profit terms. For a single product, the calculation provides a straightforward analysis of profits...

For this reason, you should not recognize a liability in anticipation of a future obligation. For example, a plan to acquire assets in the future does not give rise to a present obligation. A Liability is a present obligation of...

By adhering to stringent accounting standards, not-for-profits can build trust and credibility within the community they serve. The Statement of Functional Expenses is a crucial component of not-for-profit financial statements, providing a detailed breakdown of expenses by both their nature...

Any discrepancies are reconciled within the next step, and credit notes are adjusted with invoices. In case of differences from the vendor’s side, these are solved after the process is completed. They can be time-consuming and unproductive for accountants and...

In the construction industry, there are often significant time gaps between project expenses and revenue realization. Proper bookkeeping helps construction companies to monitor and manage their cash flow effectively. It allows them to predict periods of high and low cash...

It represents the net asset value of a company’s shareholders’ equity, and it’s calculated by dividing the total shareholders’ equity by the total number of outstanding shares. In other words, one can use this metric to determine if a company’s...

This makes QuickBooks Online ideal for contractors who manage their own books. That’s why so many in the industry are now on the lookout for the best accounting software for construction. When used properly, it can streamline your day-to-day financial...