Category: Bookkeeping
What is an Account Definition & Meaning of Account
- by siteadmin
In addition, the format of the report is stipulated by governing bodies. The end result is a financial report that communicates the amount of revenue recognized in a given period. Managerial accounting assesses financial performance and hopes to drive smarter decision-making through internal reports that analyze operations. Accrual basis accounting (or simply “accrual accounting”) records…
Read MoreFICA Tax in 2020 and 2021
- by siteadmin
It’s easy to get tripped up because you have to withhold the correct amount of FICA taxes from your employees’ paychecks, and you also have to pay the correct employer’s portion of the taxes. Simply multiply employers and employees or self-employed gross pay by the Social Security and Medicare tax rates. For the past couple…
Read MoreQuickBooks® Online Pricing & Free Trial Official Site
- by siteadmin
Both versions have mobile apps, but the app for the Desktop version primarily functions as a way to upload receipts, and the Online mobile app is robust in comparison. QuickBooks Online — often considered the industry standard for accounting software — is fairly user-friendly, but some basic accounting knowledge will help you get started. Higher-tier…
Read MoreQuickbooks Online Vs Desktop
- by siteadmin
Retailers and wholesalers should choose Plus so that they can track the quantity on hand and the cost of inventory. Contractors should also select Plus to track the profitability of individual projects. Other businesses should consider whether tracking P&L by class and location is worth the extra $30 per month. Along with these 150 reports,…
Read MoreWorking Capital: What It Is and Formula to Calculate
- by siteadmin
For assessing your company’s long-term health, you still need to look at all of your financial statements and other metrics, like the debt-to-equity ratio, which includes fixed assets and long-term debt. Your company’s working capital will also have to increase alongside your revenue, especially if you’re selling products. Increasing sales typically leads to additional cash…
Read MoreWorking Capital Formulas and What They Mean For You
- by siteadmin
Again, shrinking credit terms must be used with caution, since excessively short terms may convince customers to buy from competitors offering better credit terms. Yet another possibility is to maintain lower inventory levels, which also reduces the risk of losses due to obsolete inventory. However, a downside of having smaller inventory reserves is the risk…
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