Category: Bookkeeping

The company does not use all six months of insurance immediately but over the course of the six months. At the end of each month, the company needs to record the amount of insurance expired The Ultimate Startup Accounting Guide during that month. Supplies increases (debit) for $400, and Cash decreases (credit) for $400. When…

Though I am not a fan of technical definitions, studying the statement above will give us a better understanding of accounting. Harold Averkamp (CPA, MBA) has worked as a university accounting https://business-accounting.net/accounting-payroll-services-software/ instructor, accountant, and consultant for more than 25 years. The balance sheet tells you how much of your AR you’ve already pocketed during…

Par value is the nominal value assigned to each share of stock. It is usually a small amount, such as $0.01 or $0.10 per share. To find the total par value of common stock, multiply the number of outstanding shares by the par value per share. In both cases, the external party wants to assess…

It is essential to consider both fixed and variable costs when using the Cost Per Unit Calculator, as they can impact the overall cost per unit. Fixed costs, such as rent and salaries, remain constant regardless of the number of units produced. Variable costs, on the other hand, increase or decrease based on the volume…

I have a personal commitment to reach an expert level of knowledge between the intersection of accounting and business process improvement. If you know that employees are about to receive pay raises, either through a scheduled raise or as mandated by a labor union contract, then incorporate it into the new standard. This may mean…

That changes not only when you report income, but how you track it in your ledgers. Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period. A company can then divide the days in the period by the inventory turnover formula to calculate the days…