This blog includes 70+ bookkeeping and accounting articles about mastering and utilizing your financials for growth, like…
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Inventory is the goods a business has for sale, including raw materials, items being made, and finished products. This article provides an in-depth look at inventory and why it matters to your business. We’ll cover different types of inventory, the methods to value them, the basics of inventory accounting, challenges you may encounter, and best
Read moreAdjusting entries in accounting are important because they make sure your financial records show the right earnings and expenses for your business. They’re made at the end of each accounting period to make sure all the money you made and spent during that time is properly accounted for. In this article, we’ll explore the various
Read moreThis article will explore the nuances of direct deposit, including how it works and can be used effectively, and the ways it can benefit your business. This guide is also related to our articles on 13 best payroll software, apps & tools in 2023, 15 best payroll books to read in 2022, and online bookkeeping
Read moreUnderstanding marginal cost–the increase or decrease in total cost when you produce one more unit of a product–is important for small business owners. This article will explore everything from the basic formulas to practical examples in small business contexts, so you can apply marginal cost analysis to your own business operations. This guide is also
Read moreDepreciation is like spreading out the cost of something valuable, like a machine or a building, over the time you use it. The Double Declining Balance (DDB) method is a way to do this faster. It means you take a bigger chunk of the cost at the beginning, which can help show the true value
Read moreDepreciation lets you spread the cost of assets out over the time they’re being used, and affects both your business’s financial health and tax reporting. In this comprehensive guide, we’ll get into different depreciation methods, providing step-by-step examples to help you understand and implement each one effectively. This guide is also related to our articles
Read moreThis article will explain what contra revenue is, how to record it accurately, and some effective management strategies. We’ll also touch on related topics like gross vs. net profit, prepaid expenses, and unearned revenue. This guide is also related to our articles on understanding gross vs. net profit, understanding prepaid expenses, and understanding unearned revenue.
Read moreThe Profit and Loss (P&L) is one of the most well-known and important financial statements. It details your revenues, costs, and expenses during a specific period, showing your net profit or loss. The article will explain how to interpret various sections of a P&L statement and what these figures mean for your business. This guide
Read moreCash flow and revenue can appear similar, but they’re quite different. Revenue represents the total income earned, cash flow measures the net amount of cash being transferred in and out of a business. This guide should help you understand the differences. It’s also related to our articles on understanding gross vs. net profit, operating income
Read moreIntroduction A price increase letter is a note a business sends to its customers to tell them the prices of products or services are going up. It explains why the business needs to charge more because of changes inside the company or in the wider market. This guide explains why you should review prices regularly,
Read moreWhile both accountants and CPAs (Certified Public Accountants) work with financial statements, the distinction lies in a CPA’s licensure, which grants higher responsibilities. This distinction not only affects the scope of work they can perform but also impacts their authority and the trust placed in their financial assessments. This guide will walk you through the
Read moreYear-end closing is the process of updating your accounts to accurately reflect your business’s activities before you finalize your financial statements. This includes making adjustments for things like expenses that have been incurred but not paid (like bills) and revenues for services you’ve provided but haven’t yet billed. In this article, we’ll walk you through
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