Category: Bookkeeping

The initial stage of outsourcing, which occurred from the early 1980s to the late 1980s, was characterized by traditional outsourcing practices. During this period, businesses primarily outsourced non-core activities to external suppliers with the primary goal of reducing costs. Automatic Data Processing (ADP) played a significant role during this era, specializing in payroll, taxes, and…

Take the time to review other settings, such as the invoice and sales settings, expense settings, and tax settings. Ensure that these settings align with your specific business needs and preferences. Make any adjustments as necessary to ensure smooth accounting operations. Before fully utilizing QuickBooks Online for your new company, it’s crucial to review and…

Depreciation is an important concept in the business world, as companies need to monitor it due to its impact on their finances. For instance, if a company wants to sell machinery it bought a few years ago, it must consider its depreciated value. This value estimates what the company can anticipate receiving from the sale.…

Ben is the Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree. Putting those data points together, good places to begin include S&P 500 index funds as…

Ben is the Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets for Investopedia, and edited personal finance content for Bankrate and LendingTree. Putting those data points together, good places to begin include S&P 500 index funds as…

It is calculated by dividing the price of the stock by the earnings per share. Assets turnover is an important metric for investors to watch because it can give insights into a company’s efficiency and profitability. If a company has a low assets turnover ratio, it may be time to take a closer look at…

Intangible assets, including brand names and intellectual property, can be part of total assets if they appear on financial statements. Total liabilities include items like debt obligations, accounts payable, and deferred taxes. Suppose that XYZ Company has total assets of $100 million and total liabilities of $80 million. If the company sold its assets and…

Assets can be broadly categorized into current (or short-term) assets, fixed assets, financial investments, and intangible assets. Depreciation accounts for the normal wear and tear that an item undergoes during the ordinary course of business, and it is spread out over the course of an item’s life. examples of fixed assets Depreciation begins one month…

You can anticipate cash flow problems and solve them before they hit, and you can optimize your operations so cash flow troubles become a thing of the past. Just as with our free cash flow calculation above, you’ll want to have your Balance Sheet and Income Statement at the ready, so you can pull the…

This positive change in inventory is subtracted from net income because it is a cash outflow. There was no cash transaction even though revenue was recognized, so an increase in accounts receivable is also subtracted from net income. Businesses take in money from sales as revenues and spend money on expenses. They may also receive income from…