Category: Bookkeeping

The fluctuations in revenues may easily push a company into bankruptcy since it will be unable to meet its rising debt obligations and pay its operating expenses. With looming unpaid debts, creditors may file a case at the bankruptcy court to have the business assets auctioned in order to retrieve their owed debts. Increased amounts… Continue reading What is financial leverage? Investing Definitions

For example, current year revenue information could be used as the basis to predict revenue in future years. A company discloses an increase in Earnings Per Share (EPS) from $5 to $6 since the last reporting period. Verifiability is the extent to which information is reproducible given the same data and assumptions. For example, if… Continue reading What are Relevance and Reliability in Accounting?

As you can see in the image above, QuickBooks Online instructs you to use the Cash On Hand account instead of the Undeposited Funds account for petty cash. When you make a payment from your checking account, you should have that money available already. Although this is technically incorrect, we advocate doing whatever is necessary… Continue reading Clean up an undeposited fund where no payment was recieved

The documents required to substantiate the PPP Loan request are the same as noted above for the Schedule C Filers who do not have employees, with one exception. The applicant will have to submit its federal quarterly form 941 and state quarterly unemployment tax returns or its payroll processor records, health insurance and retirement plan… Continue reading Major Changes to PPP for Schedule C Filers

For goods in transit accounting, the foremost problem to answer is if a deal has occurred, bringing about the entry of title to the purchaser. If so, the dealer records a sale and a receivable or money and excludes the good in the ending stock. The accounting of goods on the way demonstrates whether the… Continue reading Goods in Transit or Transit Inventory

For GPs selling stakes, these deals help them find partners who can bring additional capabilities to their firm, provide an injection of capital and solve succession planning needs. The GP staking firms (i.e. those funds doing the investing) in turn benefit from gaining an interest in the other fund’s returns and balance sheets. While most… Continue reading Shareholders Equity Formula + Calculator

The best way to determine a “good” inventory turnover ratio for your business is to start tracking it. Once you have a baseline number to work with, you can adapt your inventory control. You can cope with a low inventory turnover ratio more easily if your business sells items that don’t spoil. In general, a… Continue reading Inventory Turnover Ratio: Definition, Formula and How to Calculate

They can help you keep accurate records, save time and money, stay compliant with tax laws, support growth, and make more informed business decisions. Paying your staff involves checking timesheets, allocating commission due, calculating payroll tax and superannuation, and so on. Maintaining accurate employee records, including their bank account details. Global FPO is a leading… Continue reading Accountants, Bookkeepers & Financial Advisors near you