The basic cash flow definition is that cash flow is the net cash that goes in and out of your business. Your company’s cash flow may be earned from its operations, financing, or investing. You can use your cash flow to assess cash flow management for small business your organization’s liquidity and financial performance. For …
This helps preserve the integrity of financial statements and identifies errors or fraudulent activities. For example, while performing an account reconciliation for a cash account, it may be noted that the general ledger balance is $249,000. Still, the supporting documentation (i.e., a bank statement) says the bank account has a balance of $249,900. For example, …
Accounting Reconciliation: What It Is, How to Do It, and Best Practices Read More »
If a company reports either no earnings for a period, or reports a loss, then its EPS will be represented by a negative number. Cautious investors don’t always trust the calculations of analysts or the figures published by a company. Many investors prefer this valuation batch level activity method because it is more objective; based …
Market Price Per Share: Formula and How to Calculate Read More »
LIFO does the opposite – the most recently acquired goods are expensed first. Overall, the FIFO method is fundamental to inventory accounting and financial statement accuracy. When applied properly, FIFO enhances business insights and aligns with operational realities. First in, first out method (FIFO) definition The actual inventory valuation method used doesn’t have to follow …
FIFO vs LIFO differences, examples, and formulas for 2025 Read More »
Someformal certifications include the National Association of Certified Public Bookkeepers (NACPB) and the American Institute of Professional Bookkeepers (AIPB). By logging and keeping track of all financial transactions, you will have easy access to any financial information you might need. To make it even easier, bookkeepers often group transactions into categories. Bookkeepers must keep thorough, …
The cash flow statement, also called the statement of changes in financial position, documents a company’s cash inflows and outflows. The double-entry accounting system requires the accounting equation to stay in balance as transactions post. Balance sheet accounts calculate working capital and other important ratios. Your Intuit Academy Bookkeeping badge can be used to show any …
Assets represent the valuable resources controlled by a company, while liabilities represent its obligations. Both liabilities and shareholders’ equity represent how the assets of a company are financed. If it’s financed through debt, it’ll show as a liability, but if it’s financed through issuing equity shares to investors, it’ll show in shareholders’ equity. This concept …
Accounting Equation Assets, Liabilities, Owners Equity Read More »
Managing inventory isn’t just about keeping shelves stocked—it’s about striking the right balance between supply and cost. Order too much, and you’re stuck with excess stock eating up warehouse space. Order too little, and you risk stockouts that disappoint customers and delay fulfillment. For many retailers and supply chain teams, this balancing act becomes a …
Reduce Costs with Economic Order Quantity in Inventory Read More »
Even though the order was placed in March, the money was deposited into the company’s bank account in April, so it’s recorded as an April transaction. Small-business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period can use the cash method of accounting. The cash method is best …
Cash vs Accrual Accounting: Differences Explained Read More »
In this QuickBooks Online tutorial, we’ll cover some of the most common tasks you’ll be performing in QuickBooks Online, showing you just how easy it is to use. See articles customized for your product and join our large community of QuickBooks users. Stay informed on the top business tech stories with Tech.co’s weekly highlights reel. …
How to Use QuickBooks Online: Step-By-Step Guide Read More »
Ave Luperón Km 1, Gurabo.
Telf: 809-581-5288
