Using the data you gain from keeping a ledger, your next step will be to generate and prepare financial reports for analysis. The major reports to include are the profit and loss, the balance sheet, and a cash flow analysis. Additionally, the aged accounts receivables and aged accounts payables reports are helpful in knowing which...Read More
Non-cash dividends, which are called property dividends, are more likely to occur in private corporations than in publicly held ones. Since there are 100,000 common shares outstanding, the total cash dividends will be $120,000. Specifically, a company’s board of directors has declared a $1.20 per-share dividend on 1 December payable on 4 January to the...Read More
All these factors make it a highly recommended method for calculating depreciation. While there are various methods to calculate depreciation, three of them are more commonly used. Capital expenditures are the costs incurred to repair assets and purchase assets. The expenses in the accounting records may be different from the amounts posted on the tax...Read More
A bounced check is returned — or bounced — to its original bank because the money is not in the check writer’s account to process it. One so-called rubber check could end up costing $65 or more for overdraft, nonsufficient funds and/or merchant fees. When a rubber check is presented for payment, the recipient (or...Read More
A business can create a simple cash receipt journal as shown above. For most businesses, it is part of the cash book whereas the other section comprises the cash disbursement journal. With Bench, you have a personal bookkeeper setting up monthly review calls to go over your financial reporting and ensure everything is up-to-date. Not...Read More
A ratio that is too high or too low may point to various problems that could impede a company’s ability to secure further financing or attract investors. Both short-term (also known as current) and long-term debts are factored into the total liabilities segment of the equation. Short-term debts are obligations that need to be paid...Read More
Companies often use debt financing or equity financing to cover the substantial costs involved in acquiring major assets for expanding their business. Debt financing can involve borrowing money from a bank or issuing corporate bonds, which are IOUs to investors who buy them and get paid interest periodically. Equity financing involves issuing shares of stock...Read More
This knowledge can foster trust between employees and management, leading to increased job satisfaction and loyalty. It is useful to discuss with the company’s auditors what constitutes a material item, so that there will be no issues with these items when the financial statements are audited. The Securities and Exchange Commission has suggested for presentation...Read More
Most small businesses review their income statements monthly, quarterly, and annually. This allows them to view a small window of profits from the past few weeks (especially during a peak sales season) along with a big-picture view of revenue growth over time. These documents can guide organizational change to cut expenses or seek more revenue-producing...Read More
As the founder of Business Accounting Basics, she offers a wealth of free advice and practical tips to small business owners and entrepreneurs dealing with business finance complexities. Further reading on double entry accounting is available on the Accounting Coach website. https://seobiglist.com/category/marketing/page/2/ Double entry can be complicated to grasp if you are planning to do your accounts;...Read More
