It categorizes those amounts into two categories with the same names, debit, and credit. These accounts carry their balances into the next accounting period and are used to prepare the financial statements. These accounts are closed at the end of the period by transferring their balances to the retained earnings account or other permanent accounts, […]
These resources may be people who are as senior and strategy-focused as a CFO, or more tactical and task-oriented controllers, account managers or staff accountants – and anything in between. There are a number of benefits that businesses can realize from partnering with an outsourced accounting services firm. At a high level, working with an […]
That is, accountants prepare financial reports that summarize what has already occurred in an organization. The benefit of reporting what has already occurred is the reliability of the information. Accountants can, with a fair amount of confidence, accurately report the financial performance of the organization related to past activities. The feedback value offered by the […]
Listen to your intuition and find an outsourced CFO you know you can trust. Many businesses work with an outsourced CFO on a short-term project basis, although longer-term, ongoing advisory relationships are also common. These tasks are more strategic in nature than the work typically performed by bookkeepers. So for businesses that just need a […]
The variance at completion is the cumulative cost variance at the end of the project. The calculation parameters are the budget at completion (BAC) and the actual or estimated cost at completion (EAC). The VAC is often used as a measure of the forecasting techniques – you will find more details in this article on […]
You’ll want to hang on to most records for at least three years, though there are exceptions where you may want to keep your business’s financial records longer. If you’re the founder of a budding startup, this article will guide you through everything you need to know about bookkeeping and accounting, as well as some […]
But keep in mind you have to itemize your deductions to take the SALT deduction, and itemizing doesn’t make sense for everyone. A trusted tax pro, such as a CPA, or quality tax software can help you get clarity on your particular situation. Many or all of the products featured here are from our partners […]
Let’s say company XYZ has a D/E ratio of 2.0, it means that the underlying company is financed by $2 of debt for every $1 of equity. For a mature company, a high D/E ratio can be a sign of trouble that the firm will not be able to service its debts and can eventually […]
Equity, also known as shareholders’ equity or owner’s equity, signifies the residual interest in a company’s assets after deducting liabilities. Compute total assets by summing short-term, long-term, and other assets. You can also calculate total liabilities by summing short-term, long-term, and other liabilities. Additionally, you may find total equity by gross sales vs net sales […]
Our glossary of need-to-know psychology acronyms is organized into degrees, mental illnesses, therapies, job titles, and professional organizations. When we talk about reinforcement, punishment, discriminative, and delta, the S for stimulus always comes first as a capital letter, followed by the type of stimulus in superscript. Unconditioned punishers and reinforcers use a capital letter in […]
