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Category Archives: Bookkeeping
Generally, CPAs enjoy considerably more job opportunities than non-CPAs, including careers with government agencies, public corporations and private accounting firms. This abundance of opportunities also improves your opportunities for career advancement compared to accountants without the CPA credential. Naturally, if you legally cannot perform a certain task, like filing reports with the SEC, then you […]
I try my best to keep up with each state’s requirements in the pages on my site, but these requirements change sporadically and without much warning. As mentioned, the accountancy jurisdictions in the United States set the CPA requirements. Specifically, there are 55 accountancy jurisdictions in the U.S., so theoretically, you have 55 options for […]
There are times when your business entity deposits a cheque or draws a bill of exchange discounted with the bank. However, such deposited cheques or discounted bills of exchange drawn by your business entity get dishonored on the date of maturity. The bank will debit your business account only when the bank pays these issued […]
Xero’s dedicated fixed asset manager page allows you to keep track of your fixed assets and work with your accountant to manage them, keeping your books up to date. You can manage depreciation and disposals as well as run reports to show fixed assets and their value. Zoho Books has really good inventory tracking features, […]
These and similar questions call attention to areas that require further study. One item of note becomes more apparent as a result of the trend analysis above. Initially, it https://accounting-services.net/difference-between-horizontal-analysis-and/ was stated that operating expenses were increasing between 2019 and 2021. Based on trend analysis, however, these expenses are actually declining as a percentage of […]
Not every state has the same payment schedule for property taxes; for example, New York residents pay in installments through the tax year. Plus, many counties and states allow residents to pay in advance, or to pay in arrears earlier than required (prepay). When arrears is written into a contract, whether that be in a […]
It may be unfair to discount these resources, as a company may try to efficiently utilize its capital by tying money up in inventory to generate sales. The current ratio may also be easier to calculate based on the format of the balance sheet presented. Less formal reports (i.e. not required by GAAP external reporting […]
Next, interpret the variance of each line item to see if it’s favorable or unfavorable. Say you have the following numbers and you want to analyze budget variance. Whether the amount you calculate is positive or negative doesn’t matter as much, since favorability depends on the line item. Focusing too much on small variances can […]
Both the current ratio and the quick ratio are considered liquidity ratios, measuring the ability of a business to meet its current debt obligations. The current ratio includes all current assets in its calculation, while the quick ratio only includes quick assets or liquid assets in its calculation. A quick ratio that is greater than […]