Bookkeeping

The income statement, cash flow, balance sheet, all of them are based on the initial recordings of journal entries. Double entry bookkeeping is a system that many businesses use to keep track of their finances. This system involves recording transactions in two different accounts and ensuring the debits and credits are equal. The accounting cycle … Leer más

You still take the break-even point from the current sales figure, but then divide the sum of that by the selling price per unit. The Margin of Safety Percentage Calculator is a valuable tool for investors and financial analysts. It helps to determine the percentage difference between the estimated value of an asset and the … Leer más

Some types of businesses usually operate with a current ratio of less than one. For example, when inventory turns over more rapidly than accounts payable becomes due, the current ratio will be less than one. Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable. Current liabilities of a company consist … Leer más

Fixed overheads are costs that remain constant every month and do not change with changes in business activity levels. Examples of fixed overheads include salaries, rent, property taxes, depreciation of assets, and government licenses. In order to do this, you should learn how to calculate your business’s overhead costs and factor them into your business … Leer más

Let’s say your business sold $2,000,000 in product during the first quarter of the year. The interesting thing about contribution margin ratio is that you can perform the calculation anytime to achieve a unique view into your business. In this article, the experts at Sling will help you understand contribution margin ratio better, show you how … Leer más

Striking a balance is essential for keeping investors and customers happy for the long-term success of a business. Doing this break-even analysis helps FP&A (financial planning & analysis) teams determine the appropriate sale price for a product, the profitability of a product, and the budget allocation for each project. The formula to calculate the contribution … Leer más

Monitoring your revenue and expenses should ideally become a part of your nonprofit’s organizational culture, something everyone is aware of and contributes to. Mark the events in everyone’s calendars, so that it becomes easier to repeat the process each year. This helps raise awareness for their mission while ensuring sustainability and success in achieving their … Leer más

After 60 days, the Federal Trade Commission (FTC) notes, they will be liable for “All the money taken from your ATM/debit card account, and possibly more—for example, money in accounts linked to your debit account.” If the account reconciliation reveals that an account balance is not correct, adjust the account balance to match the supporting … Leer más

Reconciling accounts and comparing transactions also helps your accountant produce reliable, accurate, and high-quality financial statements. Regularly reconciling your accounts, especially bank accounts and credit card statements can also help you identify suspicious activity and investigate it immediately, rather than months after it has occurred. And if you never reconcile your accounts, chances are that … Leer más

The calculation of DSI value is important to companies and their stakeholders since it throws insight into the efficiency of inventory management and the company’s performance. For example, the DSI value discloses how fast a company sells its inventory; that is the average time it takes to clear its inventory through sales. Calculating a company’s … Leer más