Understanding Accounting Principles and Standards helps you manage your company finances effectively wherever you are. Any debt which is not to be paid within a year is called long-term debt. The companies usually borrow long-term debt to finance a new long-term project such as a new factory. On ...

These terms typically include the loan amount, loan term, interest rate, and the amount and frequency of periodic payments. The current ratio is a measure of liquidity that compares all of a company’s current assets to its current liabilities. If the ratio of current assets over current liabili...

The process of cycle counting involves regularly scheduled counts of a subset of inventory, in contrast to a full inventory count, which is typically conducted less frequently. The data garnered from these counts is a goldmine of insights, revealing patterns and trends that can inform better deci...

The totals are reported on Form W-2 which you’ll receive from your employer after the close of the tax year. Simply ask your employer for a new W-4 form to fill out or access the current year’s version online. This information is necessary if you plan to claim tax breaks such as the Child Tax […]...

Retailers often deal with products that have a limited shelf life or are subject to strong letter for outstanding payment templates seasonal trends. By using FIFO, retailers can ensure that older stock is sold first, maintaining product freshness and minimizing waste. While FIFO is suitable for m...

Implementing a system for logging the time spent by executives and administrative staff on specific projects allows these overhead costs to be appropriately billed back to the job. Factoring these into the project transparently and accurately ensures a more realistic representation of the project...

Sales Tax is an additional charge levied by states on the retailer who then passes it to the customer. To illustrate this, look again at the sales gl codes – dash journal of Jarvis Gift Shop. On 12 March, Lisa Chadwick returned merchandise she bought on 9 March for $32.50 plus $1.95 sales tax. ...

This blog post will share everything you need to know about sole trader accounting. Now that you know how to find the right accounting software for you, you’ll need to think about what you’ll need to log. Free trials are essential to take advantage of when choosing your accounting software, a...

When using the D/E ratio, it is very important to consider the industry in which the company operates. Because different industries have different capital needs and growth rates, a D/E ratio value that’s common in one industry might be a red flag in another. Gearing ratios constitute a broad ca...

It’s the same amount of money whenever you receive it, but time is the important factor. The $10,000 received today has more value and use to you than waiting to receive it later. The annuity factor is calculated by taking the present value of the annuity and dividing it by the number of paymen...