Archive | Bookkeeping

Direct Labor Variance Analysis

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 […]

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What is Permanent vs Temporary Accounts in Accounting with Examples Xero accounting

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 – […]

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Current Assets 10+ Examples, Definition, Types, Differences

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 […]

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LIFO Reserve Formula Example

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 […]

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General Journal in Accounting

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 […]

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Bookkeeping basics: A guide for small businesses

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. […]

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