Categoría: Bookkeeping

What is Accounts Payable Automation? How to Automate AP

Accountants and AR analysts need to analyze huge volumes of financial data to prepare budgets and forecasts. Self-service analytics features in accounting automation software enable even non-IT staff to create reports and visualize data easily. Accounting automation automates mundane clerical tasks, which helps save on costs. Control spending and close books super quick, while managing financial risk. […]

When to Pay Time and a Half and How to Calculate It

Hourly can be your trusted partner in tracking your team’s work hours, handling workers’ comp, and keeping compliant payroll records. Knowing how to handle overtime payment is an indispensable part of managing your company’s payroll. It ensures you compensate your employees fairly and remain FLSA-compliant. Non-exempt workers, on the other hand, are included in the […]

Statement of Cash Flows Definition, Analysis & How To Prepare It

Study a statement to determine where changes might be made to better utilize cash, run a business more efficiently, and grow it more effectively. If the company has much higher free cash flows than it pays in dividends, then the company is likely to raise its dividend payments in the near future. Calculating cash flow […]

Expense: Definition, Types, and How Expenses Are Recorded

Companies can do this, even though it goes against accounting standards, because of an accounting principle known as materiality. But things can be confusing when you’re trying to classify regular office expenses properly. For example, let’s say Sara buys staplers, staples, paper for the copier, and a laptop computer for one of her employees. Sara […]

What Is Earnings Per Share EPS? The Motley Fool

All else being equal, the market tends to be willing to pay more for companies with higher net profits. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance […]

Types of Liability Accounts List of Examples Explanations Definition

But not all liabilities are expenses—liabilities like bank loans and mortgages can finance asset purchases, which are not business expenses. Moreover, the government requires businesses to pay taxes as mandated by the law. After earning income, taxes owed to the government are liabilities http://emergingequity.org/2015/09/05/ishares-msci-turkey-etf-tur-analyst-report/ since paying taxes is an obligation. Overall, liabilities will almost always […]

4 Bank Reconciliation Statement Problems & Solution Example

This is accomplished by scanning the two sets of records and looking for discrepancies. If you find any errors or omissions, determine what happened to cause the differences and work to fix them in your records. Before you reconcile your bank account, you should ensure that you record all the transactions of your business until […]

What Does Debit Memo Mean On Your Bank Statement?

There can be a few different types of debit memos depending on the situation and the industry. For example, they can be common in retail banking, to fix a billing error, or to offset credit. Keep reading for a further breakdown of some of the most common types of debit memos. A debit memorandum is […]

Accounting Equation: Definition, Formula & Examples

Thus, all of the company’s assets stem from either creditors or investors i.e. liabilities and equity. The accounting equation plays a significant role as the foundation of the double-entry bookkeeping system. The primary aim of the double-entry issue definition system is to keep track of debits and credits and ensure that the sum of these […]