Category Archives: Bookkeeping

This mismatch between assumed and real usage may cause discrepancies between book value and true asset value, affecting decision-making and long-term planning for asset replacement or maintenance. The simplicity of this approach makes it easier to manage and maintain each financial statement, particularly if you have limited accounting tools and resources at your disposal. It’s […]

Its catch-up bookkeeping services are a lifesaver for businesses that have fallen behind, even by more than two years. While Bench doesn’t handle invoicing, bill pay, or payroll directly, it integrates with platforms like FreshBooks so you can manage those tasks seamlessly. Bookkeeper360 checks all the boxes in both the personal bookkeeper and bookkeeping services […]

Lenders, investors, and stakeholders use gearing ratios to assess financial stability. A higher ratio signals greater reliance on debt, which means increased financial risk but also potential for about zeroing out the clearing account higher returns. A lower ratio suggests a stronger equity position, reducing risk but potentially limiting growth opportunities. Divide the company’s earnings […]

Adam received his master’s in economics from The accounting finance cover letter examples New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies […]

This means that the entity used 33.33% of its sales to cover variable costs, while the reminder is available to cover fixed costs, and then the reminder goes to net income. Before we leap into the recommendations, let’s revisit the essence of the PV ratio. At its core, this ratio quantifies the relationship between profits […]

The following table highlights the main advantages and disadvantages of each costing type, allowing an understanding of their ideal applications and possible limitations. This comparison helps you assess which of these systems best suits your production and financial control needs. The textile industry can also serve as an example, specifically in the production of basic […]

‘Birds of a Feather’ sounded more like a Billie Eilish cover band than Billie herself (I want to thank my colleague Ashley for that soundbite). The percussion sounded like it was being played on moss; wet and squelchy, but not in the ‘90s acid house way I like. While testing, I played ‘Patience’ by Mall […]

While land is not depreciated due to its indefinite useful life, buildings depreciate over time and require maintenance. Plant refers to facilities like factories and warehouses, while equipment encompasses machinery, vehicles, computers, and office furnishings. These assets are critical for daily operations but depreciate faster due to wear and tear or technological obsolescence. Capital-intensive sectors, […]

If your liabilities totaled $200,000, your company’s book value would be $600,000. You can also find the book value of a company by subtracting intangible assets (non-physical items of value) and liabilities from total assets. Calculating the book value of your small business how to hire a top bookkeeper: a comprehensive guide shows you how […]

Funds are drawn incrementally as services are delivered, ensuring client protection and professional accountability. This structure creates transparency, as unused funds can be refunded based on agreed terms. The agreement should detail how and when payments will be made, whether it’s a lump sum, monthly installments, or another arrangement. This clarity helps both parties manage […]