Bookkeeping

Most accounting software companies offer multiple subscription tiers that range in price based on the services provided. At the low end, users can expect to pay $15 to $20 per month for entry-level features. For midtier plans with more robust accounting features, a price range of $40 to $60 is typical. Manual bookkeeping Primarily, you…

Free cash flow represents what’s remaining from CFO after expenses necessary to maintain the equipment and operations of the company. This figure can tell you how well your business’s core operations are funding your short-term obligations like supplier payments and other current liabilities. Cash inflows from operating activities tend to be cash receipts from the…

Some liabilities are considered off the balance sheet, meaning they do not appear on the balance sheet. The comparative balance sheet presents multiple columns of amounts, and as a result, the heading will be Balance Sheets. The additional column allows the reader to see how the most recent amounts have changed from an earlier date.…

Today, plant assets are often referred to as Property, Plant, and Equipment (PP&E). The four main examples of plant assets, or PP&E, are land, equipment, buildings, and improvements. These assets provide considerable value to a company, and they have a long lifespan. Anything that can be used productively to general sales for the company can…

As the services against which the advance was given by Linda have been provided by the repair shop, it is no longer a receivable and should therefore be credited. Under most circumstances, Repairs and Maintenance Expenses are categorized as operating expenses. However, there are also instances where Repairs and Maintenance Expenses are capitalized into the…

Similar to bonds, when you buy preferred stock on the secondary market, the effective interest rate changes depending on market value versus par value. A bond that is trading above par is being sold at a premium and offers a coupon rate higher than the prevailing interest rates. Investors will pay more, as the yield…

The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non-operating activities. Creditors may find income statements of limited use, as they are more concerned about a company’s future cash flows than its past profitability. Research analysts use the income statement to compare year-on-year and quarter-on-quarter performance. Creditors may find…

With this specific configuration, the title of the goods transfers from the seller to the buyer once the goods are shipped. Even so, the liability is still on the shipper until the goods arrive at the final destination. Remember, while FOB and other Incoterms are internationally recognized, trade shipping point laws vary by country. So,…

The only people who need to have an ITIN are people who are required to file federal tax returns but do not have a social security number. If questions 11 through 17 on Form SS-4 do not apply to the applicant because he has no U.S. tax return filing requirement, such questions should be annotated…

Sales forecasting is significantly more accurate when using a CRM instead of a spreadsheet. When a company is just starting out, sales teams usually rely on spreadsheets or back-of-the-napkin ways to calculate their sales forecasts. This may work for a while, but eventually, you’ll find this doesn’t scale. Regardless of which sales forecasting method you…