To break it down, bookkeeping is simply the day-to-day act of recording transactions in business and reconciling bank statements. It involves closely examining how the company is progressing and using data obtained from bookkeeping to build financial statements. Keep copies of all invoices sent, all cash...
For those considering working with a PEO, one that offers payroll outsourcing services only as an option may be a good way to start the relationship before fully committing to all PEO services. Managing payroll internally is expensive because you need to hire a workforce,...
A subscription accounting firm offers monthly services for $400. Outside of payroll, the accounting firm pays $1200 annually in expenses to service this contract. With the provider and customer agreeing to delivery of a services or goods, at a specified time, for a specified price....
A make-or-buy decision occurs when management must decide whether to make or purchase a part or material used in manufacturing another product. Management must compare the price paid for a part with the additional costs incurred to manufacture the part. When most of the manufacturing...
This requires attention to detail and a solid grasp of accounting principles to ensure every entry is correct and current. While regular bookkeepers handle daily tasks under supervision, full-charge bookkeepers often operate independently, taking on additional accounting duties that affect the company's bottom line. They...
A comparison of the line items indicates that Walmart did not spend anything on R&D and had higher SG&A and total operating expenses than Microsoft. To understand the above formula with some real numbers, let’s assume that a fictitious sports merchandise business, which additionally provides...
This ratio measures the amount of debt taken by a business as against the equity. The price/earning (PE) ratio provides context into the company’s stock valuation. The PE ratio measures a company’s share price with its earnings per share, indicating whether the stock is cheap...
Liquidity refers to the ease with which an asset can be converted into cash. For example, an office building has little liquidity because it cannot be readily converted into cash. On the other hand, money in bank accounts is easily convertible into cash. Limitations of...
Another important factor to keep in mind with these words, especially if you are using them in a story or project, is that ‘lend’ and ‘borrow’ both describe temporary situations. Therefore, we may say that both of these words describe the action of somebody temporarily...
To calculate the GST on the product, we will first calculate the amount of GST included, then multiply that figure by 10% (The GST rate). GST was finalised by the Australian government toward the end of 1999, and commenced on 1 July, 2000. It was...