Category Archives: Bookkeeping

Running a business is more than just selling selling and administrative expenses examples great products or offering top-notch services. Behind the scenes, there’s a whole universe of costs that keep things humming — from paying the folks in accounting to keeping the lights on in your office. The chart also illustrates how Apple reports SG&A […]

General ledger accounting, while fundamental to business operations, comes with challenges that can impact financial reporting accuracy. Understanding these issues and implementing best practices can help businesses maintain reliable financial records. Double-entry bookkeeping forms the foundation of general ledger accounting, ensuring accuracy in financial records. Balance sheets rely on asset, liability, and equity accounts from […]

This stipulation adds an element of time-sensitive pressure, making it a marathon where both endurance and expertise are tested. Working with an adviser may come with potential downsides, such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. As in many professions, more […]

Par value is required for a bond or a fixed-income instrument and defines its maturity value and the value of its required coupon payments. A financial instrument’s par value is determined by the institution that issues it. Market value is the current price at which a bond or stock can be traded on the open […]

For example, if a company returns defective goods to a supplier, the value of the returned goods is credited to a purchase returns and allowances account, a type of contra expense account. This reduces the total cost of goods purchased, thereby adjusting the expense to reflect only the net cost. Examples of contra expenses include […]

This makes the document the source of truth that all financial reports are ultimately built off of. An adjusted trial balance finalizes account balances and is the last step before generating key financial statements. The adjusted trial balance (as well as the unadjusted trial balance) must have the total amount of the debit balances equal […]

You need to make up for that time by charging a sufficient rate for your billable hours. When you’re first starting out, hourly billing is usually the best way to go, but at some point in your career, you may want to transition to fixed-fee pricing for the Certified Public Accountant services you provide clients. […]

To calculate the ratio in Year 1, we’ll divide Year 1 sales ($300m) by the average between the Year 0 and Year 1 total asset balances ($145m and $156m). We now have all the required inputs, so we’ll take the net sales for the current period and divide it by the average asset balance of […]

The ability to honor payment obligations allows companies to negotiate better credit terms. An accurate example depends on the pricing strategy the factoring company uses. After all, you want to be 100% comfortable with the process and be aware of how it will work for your business. We’re going to go over using factoring receivables […]

More reliance on the safety margin can lead to missed investment opportunities and a narrow focus on just one part of an investment decision, which could lead to less-than-ideal results. Another problem with the margin of safety is that it often uses data from the past, which may not be a good indicator of how […]