Kategori: Bookkeeping

Valid financial transactions always result in a balanced accounting equation which is the fundamental characteristic of double entry accounting (i.e., every debit has a corresponding credit). For a company keeping accurate accounts, every business transaction will be represented in at least two of its accounts. For instance, if a business takes a loan from a […]

Scale factor is the ratio of a figure’s characteristic dimensions to the corresponding dimension of its enlarged or diminished version. As the founder of Accountingprose, I am living my best life and couldn’t imagine doing anything else. I love working with small business owners and helping to develop a team of accounting unicorns. Accounting can […]

For example, as an employer, a pay stub is an amazing tool for tax purposes when it’s time for you to submit your quarterly 941s and when it’s time to fill out your employee’s W-2 form. You won’t have to crunch numbers at the last second when you have pay stubs on record. If you […]

Sometimes this is the result of poor collections of accounts receivable. The current ratio is a liquidity and efficiency ratio that measures a firm’s ability to pay off its short-term liabilities with its current assets. The current ratio is an important measure of liquidity because short-term liabilities are due within the next year. When you calculate a company’s […]

As another example, large retailers often negotiate much longer-than-average payment terms with their suppliers. If a retailer doesn’t offer credit to its customers, this can show on its balance sheet as a high payables balance relative to its receivables balance. Large retailers can also minimize their inventory volume through an efficient supply chain, which makes […]

As another example, large retailers often negotiate much longer-than-average payment terms with their suppliers. If a retailer doesn’t offer credit to its customers, this can show on its balance sheet as a high payables balance relative to its receivables balance. Large retailers can also minimize their inventory volume through an efficient supply chain, which makes […]

Sometimes this is the result of poor collections of accounts receivable. The current ratio is a liquidity and efficiency ratio that measures a firm’s ability to pay off its short-term liabilities with its current assets. The current ratio is an important measure of liquidity because short-term liabilities are due within the next year. When you calculate a company’s […]

Because the document issued is not legally binding, there is no need for an invoice number, the exact date of delivery, or payment terms (e.g. payment in 30 days). All you will need to do to transform your pro forma into a true invoice post-delivery is to add those things in and modify the date […]

It’s not legally binding since it doesn’t demand payment, and it can also be used for quoting prices, as part of negotiation, or for customs purposes in international trade. A proforma invoice is typically used for importation customs cases or as a prelude before issuing a commercial invoice. The non-binding nature of a proforma invoice […]

Financial planners often recommend, first and foremost, contributing at least enough to a company’s 401(k) plan to earn the company’s match, if possible. A brokerage account is a key part of your financial plan, as investing in markets is one of the best ways to achieve long-term growth. It’s important that you work with a […]