If you’re interested in helping businesses track and report their finances, we can help you begin your accounting career journey with our online Bachelor’s Degree in Accounting. So, for example, if you invoice a client for $500 in February 2019 but they don’t pay you until June 2019, the revenue is recorded under June, not …
Accrual Accounting vs Cash Basis Accounting: What’s the Difference? Read More »
It offers a comparison point to determine whether a company’s debt levels are higher or lower than those of its competitors. As is the story with most financial ratios, you can take the calculation and compare it over time, against competitors, or against benchmarks to truly extract the most valuable information from the ratio. The …
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8 Top Free Accounting & Bookkeeping Software Apps for 2022 Read More »
If you hire a collections company to collect outstanding receivables, they may ask for a percentage of the balance. But DSO is just one piece of the puzzle when it comes to analyzing business performance. Business owners should assess days sales outstanding alongside other KPIs and financial ratios to get a full understanding of business …
That’s because this characteristic can be fairly fluid to some degree. In short, it indicates the level of safety that a company has for debt interest repayment. More in detail, its value and, most importantly, its trend can help us predict the company’s future financial situation the difference between financial and managerial accounting and see …
Interest Coverage Ratio ICR: What’s Considered a Good Number? Read More »
The statement of retained earnings is prepared before the balance sheet because the ending retained earnings amount is a required element of the balance sheet. The following is the Statement of Retained Earnings for Printing Plus. Before you balance your accounts, ensure sure you have a record of any money or asset transactions that enter …
Preparing an Adjusted Trial Balance Financial Accounting Read More »