Category Archives: Bookkeeping

Good communication between product development, sales, purchasing and inventory control, is essential. One of the key ways to prevent inventory from going obsolete, and even enter the slow-moving territory, is to nail down solid inventory tracking processes. Without thorough and accurate inventory tracking, your company can lose sight of what items need to be tracked, […]

The operational cycle gives an understanding of a company’s operating capability. A shorter cycle is considered and also indicates a more capable and successful business. The shorted the cycle, the faster and efficiently the company will convert its inventory investment into cash and be capable enough to meet its obligations. On the other hand, when […]

This article breaks down everything you need to know about retained earnings, including its formula and examples. For instance, a company may declare a $1 cash dividend on all its 100,000 outstanding shares. When it comes to investors, they are interested in earning maximum returns on their investments. Where they know that management has profitable […]

Each transaction a company makes throughout the year is recorded in its accounting system. There are many different journals that are used to track categories of transactions like the sales journal, all company transaction are recorded in the general journal. When you create the same journal entry on a recurring basis, it makes sense to […]

Knowing how much money you’re earning, and the cost of running your business – is the foundation of any budget. The reports you create in your bookkeeping will show what you can and can’t afford.Use the numbers in your reports to create a budget for your spending. This will help you plan for future purchases […]

Clients and partners praised their professionalism and trustworthiness, resulting in increased business opportunities and referrals. As the months went by, the team as a whole noticed significant improvements in our accounting practices. Financial reconciliations were done in a fraction of the time, and accurate reports could be generated at the click of a button. The […]

These lenders, also known as investors, may sell their bonds to another investor prior to their maturity. An entity is more likely to incur a bonds payable obligation when long-term interest rates are low, so that it can lock in a low cost of funds for a prolonged period of time. Conversely, this form of […]

In general, a program having a high benefit-cost ratio will take priority over others with lower ratios. Determining this ratio is a difficult task, however, because of the wide range of variables involved. Both quantitative and qualitative factors must be taken into account, especially when dealing with social programs. Seeking an Explanation for the Stagnation […]

Based on market conditions, the price could be less than or greater than $1,000. Say you are taking out a mortgage for $275,000 at 4.875% interest for 30 years (360 payments, made monthly). Enter these values into the calculator and click “Calculate” to produce an amortized schedule of monthly loan payments. You can see that […]

For example, revenue might be growing, but if expenses rise faster than revenue, the company may eventually incur a loss. Investors and analysts keep a close eye on the operating section of the income statement to gauge management’s performance. The cash flow statement (CFS) measures how well a company generates cash to pay its debt obligations, fund […]