Bookkeeping

Understanding your financial position helps you manage cash flow effectively, avoiding overstocking (which ties up capital) or understocking (which leads to lost sales). Increasingly, companies are using online asset tracking and management software to streamline asset management and gain enhanced visibility into asset performance and utilization. However, it’s not always worthwhile to continue putting money …

Assets Definition: Types, Examples, and Importance Leer más »

In large markets, similar models often form the basis for residual value calculations. Residual value is integral to financial reporting, influencing how companies present their assets’ financial health and future worth. It plays a key role in depreciation calculations, directly impacting the balance sheet and income statement. Accurate residual value estimates ensure that depreciation expenses …

What is the difference between residual value, salvage value, and scrap value? Leer más »

This method is usually used by businesses that sell a very small collection of highly unique products, such as art pieces. But if your inventory costs are decreasing over time, using the FIFO method will increase your Cost of Goods Sold, reducing your net income. This can benefit businesses looking to decrease their taxable income …

What is the FIFO Method? Meaning, Benefits, & How it Works Leer más »

That can help you avoid having the check returned and your account debited a fee. Typically, personal checks are good for six months (or 180 days) from when they’re dated. After that, they’re considered «stale.» Legally, banks and credit unions are not obligated to accept stale checks. A personal or business check that’s older than …

How Long Are Checks Good For? Leer más »

Recording accounts payable journal entries correctly is essential to keep your financial records accurate. When your business acquires goods or services from a vendor on credit, you need to record these transactions promptly in your accounting system. Your accounts payable is a liability account, as is easily remembered by its current liabilities section. Liability accounts …

Is Accounts Payable a Debit or Credit? Understanding AP in Accounting Leer más »

He currently serves on the boards of three software businesses—QV Systems, Reactive Technologies, and Planixs—where he works with founders and growth-focused investors. He is also an independent consultant advising scaling businesses, particularly in the technology sector. In 2024, he was appointed Chair of Loughborough Business School, where he leads the Strategic Advisory Board supporting the executive …

Restaurant accounting: A simplified recipe Leer más »

The courses with higher credits value have better marks in our example, so the overall GPA is also higher. Let us use the formula to calculate the result as an alternative solution. Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. Weighted averages are useful anytime some values …

Weighted average Leer más »

For even more detailed planning, you can also create a capital budget (used for long-term projects) and various grant budgets (for defining how you’ll use funds if your grant proposal is accepted). It’s not just about balancing the books; it’s about creating a clear financial roadmap, a basis that aligns resources with mission-driven goals. A …

The Ultimate Guide to Nonprofit Budgets + 3 FREE Templates Leer más »

For example, John takes £150 from the cashier of his store to buy himself a shirt. Because he is taking £150 out of his company, £150 will be reduced from the equity of his company. The equity is what remains of the investment of the owners of the company, by the difference between the value …

Understanding the Accounting Equation Formula Leer más »

As a refundable credit, the EITC not only reduces the amount of tax owed but can also result in a refund if the credit exceeds the taxpayer’s total tax liability. This makes the EITC a powerful tool for reducing poverty, incentivizing work, and providing financial support to those who need it most. The credit amount …

8 things to know about Oregons tax system Oregon Center for Public Policy Leer más »