Small Business Bookkeeping Basics
If you can squeeze some “good to have” features as well, do so but don’t overextend yourself. True to its name, one change in the payroll system creates an automated ripple effect, updating all aspects of payroll that are impacted. For example, if an employee moves to small business bookkeeping begin a new role after […]
What is the Working Capital Formula?
Simply put, working capital is what keeps a business afloat, as it allows for the purchase of goods and services, paying staff and paying off debts. A negative working capital shows a business owes more than the cash it currently holds. This is a red flag for both lenders and investors that would provide funding. […]
Accounting advisory services
Our advisory services guide you through the complex process of succession planning, ensuring a smooth transition that safeguards your business’s legacy and values. This is the practice of recording and reporting financial transactions and cash flows. This type of accounting is particularly needed to generate financial reports for the sake of external individuals and government […]
What is the difference between interest expense and interest payable?
Accrued interest is reported on the income statement as a revenue or expense. In the case that it’s accrued interest that is payable, it’s an accrued expense. Let’s say Company ABC has a line of credit with a vendor, where Vendor XYZ calculates interest monthly. On Jul. 31, 2019, the vendor calculates the interest on […]
Accounting Equation Assets = Liabilities + Equity
Capital essentially represents how much the owners have invested into the business along with any accumulated retained profits or losses. The capital would ultimately belong to you as the business owner. However, unlike liabilities, equity is not a fixed amount with a fixed interest rate. For every transaction, both sides of this equation must have […]
10 7 Direct Labor Variances Financial and Managerial Accounting
It’s no wonder, then, that understanding and calculating this financial variable is a big part of whether or not your business runs smoothly. On dividing this amount by 30, the number of working hours per week, we get a value of 4.33. We now add this value to the hourly wage($20) to get the direct […]
20 Best Cloud Accounting Software Solutions in 2024
Wave is a free accounting service that is designed for small businesses just starting out. The easy-to-use software has all the basic features needed to keep your accounting department in order. Wave’s built-in dashboard makes it easy to quickly access and understand your business’s financial information. Another outstanding feature is the fact an unlimited number […]
Accounting for Startups The Ultimate Startup Accounting Guide
It also earns 1.5% cash back on purchases (on both domestic and foreign) and the reward jumps to 2.62% if you have $100,000 or more deposited in Bank of America business accounts. The Expensify Commercial credit card has a lot in common with the Ramp card. Businesses can qualify for this charge card with no […]