The outsourced bookkeeper will explain what each report means so you can then base your business decisions upon that. The bookkeeper will go into detail so that you can understand your business’s current position and whether you need to change some things to ensure it does better than it is doing right now. The outsourcing […]
Category Archives: Bookkeeping
Return on assets, or ROA, is a metric expressed as a percentage for measuring the performance of a company or other investment. The better its ROA, the more efficiently a company may be using its invested resources. A lower ROA may indicate a company that, while still profitable, nevertheless does less with its money than […]
Such a company requires significant capital to fund new projects, often relying on a blend of equity and debt. Company ABC yields returns of 22% and has a composite cost of capital of 12%. In other words, it generates 10% returns on every dollar the company invests—or creates 10 cents of value for each dollar […]
When the goods or services are actually delivered at a later time, the revenue is recognized and the liability account can be removed. An accrued expense is an expense that has been incurred (goods or services have been consumed) before the cash payment has been made. Examples include utility bills, salaries and taxes, which are […]
Nestor Gilbert is a senior B2B and SaaS analyst and a core contributor at FinancesOnline for over 5 years. With his experience in software development and extensive knowledge of SaaS management, he writes mostly about emerging B2B technologies and their impact on the current business landscape. However, he also provides in-depth reviews on a wide […]
Initial outfitting of the unit is completed when the unit is ready and available for normal operations. Indirect cost pools means (except for subparts 31.3 and 31.6) groupings of incurred costs identified with two or more cost objectives but not identified specifically with any final cost objective. In short, the first few sections of the […]
Process standardization translates into a better customer experience, higher productivity, better quality, more clarity for better decision-making, and increased morale across the organization. Business process management is a way to evaluate your entire process, model the ideal process, and then improve your work based on that process model. You don’t necessarily need to use these […]
In the percentage sales method, the company assigns a flat percentage to estimate the amount for the accounts receivable for the given accounting period. Businesses that offer their goods or services on credit to their clients initiate and set up doubtful accounts to ensure that accounts receivables are accurate in the balance sheet. Accountants and […]
Later, if a customer fails to pay their account balance and the company deems the account uncollectible, they would record another journal entry to write off the bad debt. Inconsistent collection history may affect the accuracy of using the percentage of accounts receivable balance to estimate the allowance for doubtful accounts. The allowance for doubtful […]
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