Bookkeeping

Before taking this lesson, be sure to be familiar with the accounting elements. The global adherence to the double-entry accounting system makes the account-keeping and -tallying processes more standardized and foolproof. Think of retained earnings as savings, since it represents the total profits that have been saved and put aside (or “retained”) for future use. […]

If it costs $1 to produce a widget, the company’s COGS would be $2,000, and its gross revenue would be $8,000, or ($10,000 – $2,000). The goal of underlying profit is to eliminate the impact that random events, such as a natural disaster, have on earnings. Companies often choose to supplement accounting profit with their

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. Accounting software can simplify the management of and reporting from your ledger. With the appropriate level of automation integration in your chosen tool, you can pull the relevant values into

You’ll find the company’s sales, also called revenue, listed on the income statement. The total asset turnover formula shows the numerator as net sales, so what’s the difference between sales and net sales? One of the financial analysts raised his hand and asked, ‘Why would someone want to return a cupcake? ‘ Jan responds by

If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. You treat dispositions of section 1250 real property on which you have a gain as section 1245 recovery property. You recognize gain on this property as ordinary

On the other end, long-term liabilities involve what your shop owes and has the responsibility to pay at some point. An income statement includes the money you bring in (income) and the money your business spends (expenses). These statements clearly show how your shop performed financially over a given period. Chart of Accounts Complete list

Number of units are plotted on the horizontal (X) axis, and total sales/costs are plotted on vertical (Y) axis. Using the diagrammatical method, break-even point can be determined by pinpointing where the two (revenue and total costs) linear lines intersect. The total revenue and total cost lines are linear (straight lines), since prices and variable

E.g., they don’t have a grasp of double entry bookkeeping, despite doing the blue tax declaration (青色申告). And as soon as there is a complicated payable or receivable scenario, the simple data entry freee and the like provide breaks down. I risked everything I had earned, sold property, and sacrificed the stable income of my

For example, a B2B SaaS company should aim for over 300% YoY growth, while a consumer company should aim for over 20% MoM. One issue that sometimes comes up for early-stage companies is the single big customer. The company is large and influential, but you aren’t building a product for the needs of one company.

This 31% means that the company will receive around 31 cents for every dollar it invests in that fixed asset. A company decided to purchase a fixed asset costing $25,000.This fixed asset would help what is a provision for income tax and how do you calculate it the company increase its revenue by $10,000, and