Why No Ones Going Into Accounting
Double-entry accounting enters every transaction twice as both a debit and a credit. Your business’s books are balanced when all of the debits equal (or cancel out) all of the credits. And since it takes equity, assets and liabilities — on top of expenses and income — into account, it typically gives you a more […]
Schedule C Form: Everything You Need to Know
You typically should not include your W-2 income with your self-employed income on Schedule C. Regardless of whether you’re a sole proprietor or single-member LLC, the defining factor of both is that you’re the boss, and there’s no one writing you paychecks or withholding taxes from your pay. • If you are self-employed or receive […]
13 Types of Invoices Every Business Should Know
For example, business owners may consider using pay-enabled invoices that allow customers to pay their bills right from the online invoice. It is considered important documentation of business transactions for both the client and businesses to keep track of financial records and request payment from customers. It also shows what time the services were rendered and how […]
Nonprofit Fundraising Campaigns: 10 Strategies for Success
Creating a nonprofit fundraising plan or strategy for your next campaign will help you focus your efforts and guide your day-to-day fundraising efforts when things get tough. It’ll also ensure your fundraising team is aligned on certain tactics or events that may be part of your strategy. Non-exempt organizations can still raise money, but their […]
Accounting for Small Businesses: A Comprehensive Guide to Financial Management
While it is hard to predict the future of outsourced accounting for small businesses, we can see many trends and developments that will be pivotal in shaping up. Overall, from scalability to smart resource allocation, outsourcing enables you to grow your business while maintaining financial accuracy and focus on your core strategic activities. All you […]
How to Manage and Track Inventory for Your Online Store
Understanding the inventory reorder point formula helps to ensure you order at the right time and don’t risk ordering too late and run out of stock. It’s done at the SKU level so you acknowledge that each product has a different sales cycle, so it’s data-driven and accurate. Solutions like ShipBob can help automatically setup […]
How much does a bookkeeper cost?
In addition, you’ll need to add around 20% on top of salary for benefits and overhead including office space. As a business owner, you’re acutely aware of how precious a commodity time is. But what you might not realize is that putting bookkeeping off can cost exponentially more time. Not to mention, if you want […]
FIFO vs LIFO Inventory Valuation
The most important benefit is that it allows a comparison between LIFO and FIFO and the ability to understand any differences, including how taxes might be impacted. The inventory process at the end of a year determines cost of goods sold (COGS) for a business, which will be included on your business tax return. COGS is deducted […]
What Changes in Working Capital Impact Cash Flow?
Working capital can be very insightful to determine a company’s short-term health. However, there are some downsides to the calculation that make the metric sometimes misleading. Current assets are economic benefits that the company expects to receive within the next 12 months. The company has a claim or right to receive the financial benefit, and […]
Accounts Payable Turnover Ratio: 100% Best Guide with Formulas and Examples
You can also run several reports that will help you not only calculate your A/P and A/R turnover ratios but also analyze cash flow and profitability. While both are turnover ratios, each reveals a different aspect of business operations. As discussed earlier, A/P turnover measures how quickly a company pays its suppliers. Meanwhile, A/R turnover […]