You can’t run a healthy, successful business without having your books in order. It’s like driving a car without a fuel gauge or a map—sooner or later you’re going to get lost or run out of gas. If the cost starts to approach the actual cost of outsourced bookkeeping, it’s time to consider taking the […]
Archivos de Categoría: Bookkeeping
As we have already mentioned, each job order in a job order costing system has its own https://www.simple-accounting.org/. And that cost usually breaks down in terms of direct labor, direct materials, and manufacturing or service overhead. Job costing provides a granular view of where every dollar is spent in a construction project. This detailed tracking […]
«Solvency refers to a firm’s ability to meet financial obligations over the medium-to-long term.» At a corporation it is the residual or difference of assets minus liabilities. what is amortization Next, we will look at two additional financial ratios that use balance sheet amounts. These financial ratios give us some insight on a corporation’s use […]
If the non-current liability requires a settlement within 12 months, companies must reclassify it. This treatment requires recording the non-current obligations under the current portion. At the end, when a company repays its non-current liabilities, it must remove the balance. After this treatment, non-current liabilities do not require further accounting. During the time a company […]
Unfortunately for founders, accounting rules are very specific on some things, and surprisingly unhelpful in other areas. There are actually no Generally Accepted Accounting Principles (GAAP) rules on the type of costs that are included in the Cost of Goods Sold (COGS). But as mentioned earlier, the line item can be broken out individually depending […]
Aligned with this, a profitability index great than 1.0 presents better cash inflows and therefore, the project will be accepted. It might seem like an ideal capital budgeting approach would be one that would result in positive answers for all three metrics, but often these approaches will produce contradictory results. Some approaches will be preferred […]
Many leaders are reluctant to make the final call when there are good arguments and a lot of emotions on both sides. We intuitively want the team to come to the right decision on their own. But I’ve found that people are enormously relieved when they hear that you’re grabbing the baton and accepting responsibility […]