Bookkeeping

What is Prepaid Rent? Its Importance in the Accounting Sphere

It is important to note that in this calculation, the first period is accounted as ‘zero’ in the annuity/cash flow. This is because it has already been prepaid and is not included in the lease liability. Consider an example where the present … Tiếp tục

Accounting Journal Entries: Definition, How-to, and Examples Bench Accounting

The purpose of an accounting journal is record business transactions and keep a record of all the company’s financial events that take place during the year. An accounting ledger, on the other hand, is a listing of all accounts in … Tiếp tục

How to write an accounting journal entry

A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number. Journal entries are how we record transactions and adjust accounts. Every financial transaction is recorded … Tiếp tục

How to calculate outstanding shares

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, Bookkeeping for Veterinarians happier, and richer. Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, … Tiếp tục

Construction accounting for busy contractors

These experts possess in-depth knowledge and expertise in handling complex financial responsibilities such as job costing, payroll taxes, and reporting. Typical financial accounting mainly focuses on the management of financial statements, balance sheets, cash flow statements and retained earnings. In … Tiếp tục

Construction accounting 101: An expert guide for contractors

Construction is one of those rare industries that face rigorous compliance requirements, followed by multiple profit centers and decentralized production. With unit-price billing the contractor doesn’t charge the customer for the total amount at once. Conversely, the contractor bills the … Tiếp tục

Break-Even Analysis: Complete Guide with Formulas, Examples & Applications

It won’t tell you what your sales are going to be, or how many people will want what you’re selling. It will only tell you the amount of sales you need to make to operate profitably. Break-even analysis plays an … Tiếp tục

Break-Even Analysis: Understanding the Point of Profitability

Whether you’re launching a product, starting a business, or pricing services, knowing your break-even point helps you make smarter decisions. Let’s say you’re running a small bakery that sells delicious cupcakes. Your monthly fixed costs are $2,000 (rent, utilities, salaries, … Tiếp tục

Accounts Payable Turnover Ratio Formula + Calculator

One crucial aspect that quietly influences its financial health is accounts payable. Accounts receivable turnover ratio is another accounting measure used to assess financial health. Accounts receivable (AR) turnover ratio simply measures the effectiveness in collecting money from customers. The … Tiếp tục

What Is Accounts Payable AP Turnover Ratio?

However, due to potential risks or limitations in its interpretation, it should be used in conjunction with other top financial KPIs to drive business success. Generally speaking, a good accounts payable turnover ratio indicates that the payment of accounts payable … Tiếp tục