Archive | Bookkeeping

Effective care and storage are key in safeguarding your books against damage and deterioration. This minimises the risk of tears and preserves the book’s integrity. Store your books in an environment with stable, moderate temperatures and humidity levels. Books of average size should be placed upright on shelves, while larger, heavier books should be laid […]

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 […]

The break-even situation for the given case can be calculated in either quantity terms or in dollar terms. So to break even, Maria needs to create and sell eight quilts a month. If she wants to turn a profit, she’ll need to sell at least nine quilts a month. While gathering the information you need […]

The Quick Ratio, also known as the acid-test ratio, is a more stringent measure of liquidity compared to the Current Ratio. It excludes inventories from current assets, focusing on the company’s most liquid assets. This article will teach you everything you need to know about the times interest earned ratio, including how to calculate it […]

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 […]