Kategori: Bookkeeping

As a CPA consultant, you analyze the numbers and trends and provide thoughtful, detailed insight to improve your client’s business going forward. If you succeed in forging a path to your client’s growth, you also create a solid footing to continue working with them long-term as a business partner and advisor. Caryl Ramsey has years of experience assisting in different aspects of bookkeeping, taxes,…

That is why it is almost always listed on front page of the income statement in one form or another. Let’s take a look at how to calculate gross profit and what it’s used for. Irrespective of the differences in operating expenses (OpEx), interest leasehold improvements expenses, and tax rates among these companies, none of these differences…

One would expect a trading company to have a faster rate of stock turnover. Whether it’s running sales, bundling products, or investing in digital marketing campaigns, selling more inventory more quickly can help you improve your inventory turns. Average inventory can be calculated by taking the inventory balance on the previous and current periods’ balance…

A good current ratio may fall in the 1.5 to 2.0 range, depending on the industry. Having double the current assets necessary to pay current debt obligations should be seen as a good sign. Both of these indicators are applied to measure the company’s liquidity, but they use different formulas. In other words, the current…

A good current ratio may fall in the 1.5 to 2.0 range, depending on the industry. Having double the current assets necessary to pay current debt obligations should be seen as a good sign. Both of these indicators are applied to measure the company’s liquidity, but they use different formulas. In other words, the current…

The completion of work is measured by the percentage of efforts expended till date as compared to estimated total effort expected to be expended for each contract. The percentage of completion is based on labor hours, machine hours or material. Total estimated expenditures for the contract represent the total budgeted cost for the project. Accounting…

These include liens like mechanic’s liens, liens by homeowner’s associations, or tax liens. As soon as payment is due, the liens arise until you pay the debt. With federal tax liens, the lien arises when the tax is assessed. If you fail to pay, the IRS will send you a notice of federal tax lien.…

If understood, this analysis can be conducted even by individuals, but it will require experience as it is neither an easy nor a short task. Yet, despite the complexity and duration needed, this analysis is needed to ensure the mitigation of risk. Before labeling the entity, the loan provider will consider many elements, such as…

The purpose of our cash flow is to reconcile cash so we will use the figure later. It is one of the two methods used to create a cash flow statement for a business. Instead of converting the operational section from accrual to cash accounting, the statement of cash flows under the direct method employs…

Market demand may increase the stock price, which results in a large divergence between the market and book values per share. Say, for example, that in the XYZ case the company buys back 200,000 shares of stock and there are still 800,000 outstanding. https://www.business-accounting.net/ In addition to stock repurchases, a business may raise BVPS by…