Bookkeeping

These earnings are typically also used for growth, but they’re not earmarked for a specific transaction or project. Note that “Dividends” include all types of dividends, including stock issuances. Learn what outsourced accounting involves, its advantages, and whether or not it’s right for you. What type of account is retained earnings? This transparency fosters trust…

The common ratio can have both negative as well as positive values. To find the dollar-value lifo method calculation terms of a geometric series, we only need the first term and the constant ratio. The infinite geometric series sum formula is employed when the number of terms in a geometric progression is unlimited. Depending on…

Enter your login credentials for that account, and the software imports recent transactions, usually 90 days‘ worth, and adds them to an online register. Banks have been tightening up their security (which is a good thing), so you may have to jump through a couple of security hoops to get connected. FreshBooks accounting software gives…

Keep your income flowing with the help of flexible payment options, and money transfers in as little as two days. As a self-employed professional, your flexibility is a huge advantage, so you need financial processes that are as flexible as you are. Wave’s accounting software is designed for self-employed people and freelancers like you, and…

At the very top of the working capital schedule, reference sales and cost of goods sold from the income statement for all relevant periods. These will be used later to calculate drivers to forecast the working capital accounts. A higher ratio also means the company can continue to fund its day-to-day operations. The more working capital a…

A domicile is that place where you have your true, fixed and permanent home and principal establishment and to which, whenever absent, you intend to return. An absence which exceeds 90 days constitutes a break in residency for COLA purposes. You can purchase up to five years of active service including active duty National Guard…

First, paying yourself (and your family) market rate wages is great for your morale. Something happens in our brain when we know we are making the six-figure salary we deserve. Second, we know lots of business owners who have paid themselves this way through their payroll company (again, not giving you tax advice). They found…

There are pros and cons to every business decision and payroll outsourcing is no different. Before partnering with a full-service payroll provider, employers should make sure the vendor is capable of meeting all of their requirements and has a reliable track record. As mentioned before, these are further areas where a misstep by a payroll…

The bakery’s direct costs of making those cakes, including ingredients and labor, total $500. The gross margin for the bakery would be $500 (more commonly expressed as a 50% margin), which is the revenue of $1,000 minus the direct costs of $500. This means that the bakery has $500 left over to pay for its…

While some of these terms might not apply to your business right now, it’s important to develop a holistic understanding of the subject in case you expand or move into another type of business. A balance sheet is a snapshot of your business’s financial standing at a single point in time. A balance sheet will…