Category Bookkeeping

A company’s receipts that appear on the company’s records but do not yet appear on the bank statement. For example, a retail store’s receipts of March 31 are deposited after banking hours on March 31 or on the morning of…

They need to have a strong marketing strategy to maintain the market share. It also exposes the risk of new competitors who are working for the same target customers. Another accounting term closely relates to the degree of operating leverage.…

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Even in the event of disrupted income, growth of a company, or any other financial challenges that may arise. A lower debt to income ratio will represent a more stable company, with a greater ability to borrow during times of growth…

Accurate and efficient bookkeeping is essential for any business, and understanding the difference between temporary vs permanent accounts can help you improve your accounting operations. Measuring a company’s performance during a certain is rent expense a permanent or temporary account…

This plan adds up to three users to the account so that the right people have access to data at their fingertips. It also gives you bill management and collects employee time for invoices to add them for proper billing.…

In this section all the resources (i.e., assets) of the business are listed. In the balance sheet, assets having similar characteristics are grouped together. The mostly adopted approach is to divide assets into current assets and non-current assets. Current assets…

The better prepared your staff is, the more efficient they can be. This is a straightforward guide to the chart of accounts—what it is, how to use it, and why it’s so important for your company’s bookkeeping. In other words,…

For example, if a company made $100 million in annual profits, but only paid out $10 million to shareholders, its retained earnings would be $90 million. Retained earnings are the profits that a company has earned and reinvested in itself…

It is common to confuse Notes Payable (N/P) with another liability, Accounts Payable (A/P), but they are fundamentally different. If the note is zero-interest bearing, the present value tables have to come into play. AP is more than a set…