Bookkeeping

Retained earnings are profits a company keeps instead of paying to shareholders as dividends, crucial for growth. Retained earnings to market value isn’t as commonly used as retention and payout ratios, but it does provide insights into how effectively a company is using its retained earnings. After all, an investor only benefits when you use […]

Thus, the variance is created due to variance in the actual production against the budgeted production. Specifically, fixed overhead variance is defined as the difference between standard cost and fixed overhead allowed for the actual output achieved and the actual fixed overhead cost incurred. These costs are budgeted based on estimates and assumptions made at

On 22 January, Sam Enterprises pays $9,500 cash to creditors and receives a cash discount of $500. On 1 January 2016, Sam started a trading business called Sam Enterprises with an initial investment of $100,000. Before taking this lesson, be sure to be familiar with the accounting elements. Shaun Conrad is a Certified Public Accountant

Upon receiving them, the last inventory stock would always be the first to be used. This post discusses both methods and provides an example that illustrates their difference. If Kelly’s Flower Shop uses LIFO, it will calculate COGS based on the price of the items it purchased in March. In January, Kelly’s Flower Shop purchases

DDA debit refers to “direct debit authorization”, which is an authorized withdrawal from an individual’s bank account by a third party. Not surprisingly, DDA debits are common across a wide range of services, including subscription payments, regular service charges, and more. Depending on the service being provided, you may need to contact your financial institution

A cash receipt is an important tool for businesses in legal compliance as well. Businesses can maintain sales tax or VAT cash receipt journal entry records with the help of a cash journal. A cash receipts journal is also known as a specialised accounting journal. Cash Receipts Journal When recording cash collections from customers it

A low ratio compared to industry averages indicates an inefficient use of business assets. Operating ratio is used to determine the efficiency of the management with which it is possible to generate a certain level of sales or revenue. It also helps in establishing how the company’s management is instrumental in reducing costs. The net

For example, a small business that manufactures widgets may have fixed monthly costs of $800 for its building and $100 for equipment maintenance. These expenses stay the same regardless of the level of production, so per-item costs are reduced if the business makes more widgets. Table 1.2 provides several examples of manufacturing costs at Custom

Think CRM platforms for managing customer relationships, inventory management tools for tracking stock, and e-commerce platforms for selling online. As Forbes points out, QuickBooks Online boasts over 650 app integrations, simplifying and automating many accounting tasks (source). This extensive network of integrations streamlines processes, reduces manual data entry, and provides a more holistic view of

Those who want to take their accounting on the go will appreciate the mobile app. It brings most of the features of the online platform, plus it enables mileage tracking and receipt capture for quick and convenient recordkeeping. For $1,922 per year, get the Enterprise plan with advanced pricing, reporting and inventory. Simple Start I