Feel free to copy and paste it and add or remove accounts according to your needs. If bookkeeping isn’t your strong suit, or if you’re months or years behind, you might make mistakes and miss tax deductions and tax planning …
Generally accepted accounting principles (GAAP) require public companies to utilize accrual accounting for their financial statements, with rare exceptions. Every individual company will usually need to modify the eight-step accounting cycle in certain ways in order to fit with their …
Common examples of industries recognized for their high and low degree of operating leverage (DOL) are described in the chart below. However, if revenue declines, the leverage can end up being detrimental to the margins of the company because the …
In the example above, the company does not write a check each year for $1,500. Instead, amortization and depreciation are used to represent the economic cost of obsolescence, wear and tear, and the natural decline in an asset’s value over …
Managerial accounting is the accounting that provides managers and owners (internal users) with financial information that they need in order to make operational and strategic decisions. The information managers use may range from broad, long-range planning data to detailed explanations …
This article gives you the reorder point formula and how to calculate your reorder point. Believe it or not, the time of year can throw your reorder point formula for a loop if you’re not careful. The reorder point is …
Consequently, an increase in output results in a decrease in the total cost per unit, leading to potential economies of scale that can provide a competitive advantage. Unlike variable costs, fixed costs remain constant over a period of time and …
For example, Walmart Inc. (WMT) and Unilever (UL) make regular quarterly dividend payments. When the dividend is declared, $750,000 is deducted from the retained earnings sub-account and transferred to the paid-in capital sub-account. The value of the dividend is distributed …
This will prevent you from getting into hot water by overcommitting yourself to spending based on an overzealous cash flow projection. That means your business can have heavy cash outflows for various startup costs (loading up on inventory, for example) and …
Bookkeepers are responsible for recording and classifying financial transactions. Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. The team of Mazars consists of 100 partners and around 700 employees, and …