Category: Bookkeeping

Times Interest Earned is used to measure a company’s ability to meet its debt obligations. Days Receivables indicates the average number of days that receivables are outstanding. High numbers indicate long collection periods, low numbers indicate efficient collection of receivables. Profit Margin is used to determine the profitability of each dollar of sales that company …

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When it comes down to it, the process of financing your business will largely depend on which unique method you choose. This being said, however, if you’re looking into debt financing (and to some extent, equity financing) the next step in the process will be evaluating your business’s qualifications. Plus, even if your business isn’t …

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Perpetual LIFO also transfers the most recent cost to cost of goods sold but makes that reclassification at the time of each sale. A weighted average inventory system determines a single average for the entire period and applies that to both ending inventory and the cost of goods sold. A moving average system computes a …

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Understanding which stock is available at a given time requires constant updates or a perpetual system. Let’s compute the ending inventory step by step using the sample data taken from the inventory records of a company selling table tennis paddles. Figure 10.14 shows the gross margin, resulting from the specific identification perpetual cost allocations of …

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New users can choose between a 30-day free trial or a three-month 50% discount. If you choose the free trial, note that QuickBooks requires a credit card to sign up. Your card will be charged automatically once the trial ends unless you cancel in advance. No, there’s no free version of QuickBooks for businesses, but …

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The program is known for its customizable invoices—making it our overall best invoicing software. You can upload your company logo, select from different templates, change the invoice colors, edit invoice fields, and add personalized messages for customers. Excel is a spreadsheet program that you can use for multiple functions like creating databases, project management and, …

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Follow this resource step-by-step to establish an effective accounting process, avoid costly mistakes, and make more money. Implement robust cash flow forecasting and management practices to ensure your business remains financially healthy. Proper expense categorization is crucial for accurate job costing and financial reporting. Develop an easy-to-follow system and create a habit of recording each …

Read more “Understanding a chart of accounts in construction”