Bookkeeping

If you’ve ever created a balance sheet for your business, you may be familiar with assets and liabilities. “Current” refers to one year or one business cycle (whichever is shorter). The operating working capital formula considers only the operating assets and liabilities, excluding cash and short-term debt. This approach provides a clearer picture of the […]

This project is all about improving the structure and the communication effectiveness of financial statements. In the world of IFRS Standards, change has been a constant pretty much since we started back in 2001. First, we had to knock the inherited Standards into shape, in time for EU adoption in 2005. IFRS Sustainability Standards are

However, you typically only have a limited period, such as 30 days from the statement date, to catch and request correction of errors. Sum up the value of these checks to determine the total outstanding amount. The “column number” is the column that has the cleared check information (e.g., 2 for dates or 3 for

Unlike equity capital, debt does not involve diluting the ownership of the firm and does not carry voting rights. Debt capital is also often cheaper than equity capital and interest payments may be tax-advantaged. The accounting treatment for the issuance of bonds depends on whether the bonds are issued at par, a discount, or a

As with other income, the equity statement accounts for costs incurred or losses sustained by the business that are not recorded in the income statement. Other comprehensive losses include actuarial or unrealized losses resulting from financial derivatives. Net loss is the loss experienced by the business as a consequence of its activities within the fiscal

Our article on business bookkeeping basics gives you more information on how to do bookkeeping and why. Understanding compliance and regulations is also imperative when exploring outsourcing options. Once seen as the foundation of administrative tasks, Bookkeeping is now a dynamic and strategic function within CPA firms. Just as with the role of CPAs, we

The next step is to inform your clients about the transition you’re doing to a paperless invoicing system. Identify the key steps involved in creating, distributing, and processing paper invoices. Understand the roles and responsibilities of the stakeholders in your company that exist in your current system. Accessibility is one of the biggest benefits of

For some investors and for some circumstances, illiquid assets actually hold an advantage over liquid assets. If a company or individual can sacrifice liquidity, it may generate higher returns from the asset. Below are three common ratios used to measure a company’s liquidity or how well a company can liquidate its assets to meet its current obligations. Because each

Read this section, which focuses on the four inventory costing methods and the impact each has on the financial statements. It is important to understand the impact of inventory valuation on your own company, https://personal-accounting.org/ and the companies that you partner with, sell to, buy from, and invest in. One sure-fire way to determine exactly

Content Services Who can issue an invoice? Applying abroad in the EU Write each line item with a description of services Resources for Your Growing Business How To Create an Invoice for Your Business Typically, when an invoice has multiple line items, the total tax liability is calculated for the final invoice amount and displayed