Category: Bookkeeping

Here is a list of our partners and here’s how we make money. If you invoke the guarantee, QuickBooks will conduct a full n evaluation of the Live Bookkeeper’s work. All QuickBooks Online plans come with a one-time Guided Setup with an expert and customer support. I enjoy being able to work on our books… Continue reading QuickBooks Desktop, Compare QuickBooks Desktop to Online

The next disadvantage of AI is that it lacks the human ability to use emotion and creativity in decisions. The biggest and most obvious drawback of implementing AI is that its development can be extremely costly. One estimate says that the cost for a fully implemented AI solution for most businesses ranged from $20,000 to… Continue reading Advantages and Disadvantages of Artificial Intelligence

Let’s dive into these ledgers to get a better understanding of what they are and why they’re so important to keeping your small business’s accounting in order. Your trial balance gives you a quick rundown of the different accounts so you can easily see which ones need more attention. Maybe your revenue account is looking… Continue reading A Beginner’s Guide to General Ledgers

This resulting margin indicates the amount of money available with your business to pay for its fixed expenses and earn profit. In other words, contribution margin per unit is the amount of money that each unit of your product generates to pay for the fixed cost. Accordingly, the contribution margin per unit formula is calculated… Continue reading Contribution Margin Formula + Calculator

Therefore, it is more suited to depreciating assets with a higher degree of wear and tear, usage, or loss of value earlier in their lives. For the second year of depreciation, you’ll be plugging a book value of $18,000 into the formula, rather than one of $30,000. Don’t worry—these formulas are a lot easier to… Continue reading Double declining balance method: A depreciation guide

Taxes are an important financial aspect to consider and can differ from business to business. So to get a much clearer picture of the company’s financial position, EBIAT can be used to calculate the ratio instead of EBIT. If you are a bondholder, it may be helpful to take note of the guidance provided by… Continue reading Interest Coverage Ratio ICR: What’s Considered a Good Number?

Two kinds of current assets – prepaid expenses and inventory – cannot be immediately liquidated. The acid-test ratio formula is valuable for assessing a company’s liquidity and ability to repay its debts. The ratio indicates whether a company can meet its financial obligations by comparing its quick assets to its current liabilities. Now, while some… Continue reading Acid Test Ratio Calculator

Mary Girsch-Bock is the expert on accounting software and payroll software for The Ascent. If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual… Continue reading What Are Liabilities in Accounting? With Examples

Determining what can be defined as a high or low market-to-book ratio also depends on comparisons. To get a sense of whether The Outlet’s book-to-market multiple is high or low, it should be compared to the multiples of other publicly listed retailers. Long-term liabilities might be related to obligations under property, plant, and equipment leasing… Continue reading Financial position definition

The beginning period retained earnings is nothing but the previous year’s retained earnings, as appearing in the previous year’s balance sheet. Retained earnings are the portion of a company’s net income that management retains for internal operations instead of paying it to shareholders in the form of dividends. In short, retained earnings are the cumulative… Continue reading Comprehensive Guide to Retained Earnings on a Balance Sheet