Archive | Bookkeeping

As with direct materials variances, all positive variances are unfavorable, and all negative variances are favorable. The labor rate variance calculation presented previously shows the actual rate paid for labor was $15 per hour and the standard rate was $13. This results in an unfavorable variance since the actual rate was higher than the expected […]

Expense accounts represent the money spent by a business to generate revenue and maintain its operations. Common expense accounts include the cost of goods sold, administrative, marketing, taxes, and depreciation accounts. They help you track your performance in a given accounting cycle and determine whether or not you’re meeting your short-term business goals. Revenue – […]

Unlike fixed assets like property or machinery, current assets are fluid. Without them, businesses would struggle to maintain cash flow or handle unexpected expenses. Current assets are expected to be liquidated within a year, while noncurrent assets provide Law Firm Accounts Receivable Management value over a longer period, typically more than one year. Noncurrent assets […]

Sales tax is a simple calculation based on the percentage of a retail price of a good or service. To calculate it, convert the sales tax percentage to a decimal, then multiply it by the retail price of the product or service. The cheapest way to pay a tax bill is still via a check […]

However, Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net Debt, Adjusted Net income and Adjusted Diluted EPS are non-GAAP financial measures regarding our operational performance and liquidity. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. It is important […]

Use the demo company to explore Xero’s features, or enter your own business details and data to try it out for real. Xero retains everything you’ve entered when you transfer from a free trial to a subscription. Xero’s bank feed securely imports your transactions into the Xero accounting software each business day. Simplify your finances […]

The balance sheet summarizes the financial position of the company at the end of a specific period, usually at the end of the fiscal year. It is used by stakeholders to evaluate a company’s financial strength and to make investment decisions. When learning the accounting process, from debits and credits to double-entry, it’s easy to […]

Once entered, the general journal provides a chronological record of all non-specialized entries that would otherwise have been recorded in one of the specialty journals. Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system. As business events occur throughout the accounting period, journal […]

However, accountants are brought in when the business needs more strategic advice, especially as it bookkeeping and payroll services relates to taxes and corporate or financial planning. As your business grows, you might wish to hire either a full-time or part-time, in-house or outsourced bookkeeper to organize transactions, payroll, payments to vendors, and other tasks. […]

This type of system is called progressive taxation, which aims at reducing income inequalities in a given country. Tax credits lower your tax bill dollar-for-dollar, but they don’t affect your marginal tax bracket. While you might have the goal of falling into a lower tax bracket, your primary goal should be to get your effective […]