Category: Bookkeeping
What does DCF stand for?
The relative simplicity of the DCF formula means that estimates of the net present value of an investment can be easily changed. Notice, also, that using the discounted cash flow to assess this particular project, instead of just using the raw cash flows, suggests that it is a much less profitable investment than it first…
Read MoreCalculating Trend Percentages Financial Accounting
In this example, the sales have increased 59.3% over the five‐year period while the cost of goods sold has increased only 55.9% and the operating expenses have increased only 57.5%. At the end of 20X0, the sales had increased almost 20%, but the cost of goods sold had increased 31%, and the operating expenses had…
Read MoreWhat is Trend Analysis? Definition Meaning Example
For example, a company may change its business model so that it begins to operate in a new industry or it may change the end of its financial year or the way it accounts for inventories. Horizontal analysis is used in financial statement analysis to compare historical data, such as ratios, or line items, over…
Read MoreHow to Define, Calculate, and Manage Sales Backlog
Hitting that overdrive button will simply lead to poor quality work and high levels of employee burnout, which will have knock-on effects that could damage your business. A large backlog in business may impact your company’s future earnings. For example, a heavy backlog of financial paperwork or delayed loan applications. Bug fixes are self-explanatory, and…
Read MoreDebits and Credits T-Accounts, Journal Entries
To credit an account means to enter an amount on the right side of an account. If you ever need to replace your accountant, Wishup makes the process easy. They have a team of experts who can step in and take over seamlessly. If a value is placed into the debit column of the expenses…
Read MoreDebit and Credit Cheat Sheet
This means that at the end of the previous financial year this business had that much money in their bank account. The value of a transaction can be entered once as a credit, but split into 3 different debits on 3 different accounts as long as the 3 when added up equal the one credit.…
Read MoreWhat is a liability account?
Considering the name, it’s quite obvious that any liability that is not near-term falls under non-current liabilities, expected to be paid in 12 months or more. Referring again to the AT&T example, there are more items than your garden variety company that may list one or two items. Long-term debt, also known as bonds payable,…
Read MoreLiability Definition, Accounting Reporting, & Types
We use the long term debt ratio to figure out how much of your business is financed by long-term liabilities. If it goes up, that might mean your business is relying more and more on debts to grow. Also sometimes called “non-current liabilities,” these are any obligations, payables, loans and any other liabilities that are…
Read MoreThe Complete Guide to Bookkeeping Services for Franchises
Accurate cash flow records are vital for managing a franchise’s working capital requirements and ensuring cash is available when needed. Revenue recognition is the process of recording revenue when it is earned, regardless of when payment is received. In a franchise business, revenue recognition can be complex, as it may involve royalties, franchise fees, and…
Read MoreTaxation and Bookkeeping Franchise Opportunities, Taxation and Bookkeeping franchises for Sale
Affordable Service – Hiring a full-time bookkeeper can cost you tens of thousands of dollars annually. But our bookkeepers work remotely at a fraction of the cost, saving our clients money. Simple & Easy to Start – Enjoy the freedom of owning your own bookkeeping business and the flexibility to run it from virtually anywhere.…
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