Category: Bookkeeping

The ‘inventory period’ measures how many days on average the inventory remains in the system before it’s sold. The ‘accounts receivable period’ is the average number of days it takes for a firm to collect cash from its customers after a sale has been made. Read More …

This allocation method doesn’t allow costs to be allocated between multiple support departments. For example, what if legal also provides services to the HR department? When you rank the support departments and allocate out the costs, you can’t allocate costs back in. When cost accounting, Read More …

The construction industry is highly susceptible to political and economic fluctuations that disrupt the supply chain. Things can happen beyond your control to destabilize your cash flow, such as bad weather conditions or a piece of equipment breaking down. This guide to construction bookkeeping will Read More …

Processing your ITIN application takes several weeks, so expect longer than normal delays for your tax return to be processed. The process could cost as little as $30 or as much as $400. That being said, the price will vary depending on where you live Read More …

For communities with reserve funds and/or active investment funds, it is always best to review quarterly reports, as well as pay close attention to variances. Boards may request to review interim reports to directly monitor fund balance and proper allocation. It is highly recommended to Read More …

Key ratios like the current ratio and debt-to-equity ratio provide insight into a company’s liquidity, leverage, and ability to meet its short-term and long-term obligations. Unusual changes in these ratios over time signal financial distress or improvement. Financial ratios help measure a company’s performance in Read More …

Proper documentation of financial transactions is important for preparing financial statements like balance sheets, preparing tax returns, and monitoring a company’s financial health. A small business loan may support you when starting up or investing in growth resources. To qualify for a business loan, you’ll Read More …

A good finance team plans for these challenges and more, making sure the company always has enough cash to cover its financial obligations. While it is a smaller part of the bigger machine, automating bill processing and payment workflows is fast becoming a competitive advantage Read More …

The cost of labor for a salaried employee is their yearly salary divided by the number of hours they’ll work in a year. While no one likes taxes, the good news is that federal, state, and local income taxes are withheld — they come out Read More …

The purpose of account reconciliation is to ensure that the money coming in and going out (debits and credits) always matches up. Reconciliation helps identify and fix errors like misapplied payments, ensuring accurate financial information. It’s also important to ensure you maintain detailed records of Read More …