These produce or sell goods and services that are always in demand, like food and beverages, household products, and personal care products. It tells us how effective the company’s management has been in wringing profits from sales, and how much room the company has to withstand a downturn, fend off competition, and make mistakes. Corporate […]
However, a self-employed individual is not necessarily an independent contractor. The designer, an independent contractor, would do whatever job is set out in the agreement and bill the architectural firm (with whom they are contracted to work) either an hourly or flat rate for the work executed. To get paid what is owed, the designer […]
Kruze provides startups with specialized accounting, tax advisory, and financial reporting services you need so you can focus on the big picture. Early-stage companies move quickly, and you need an experienced bookkeeper or accountant to review your books and financial records to make sure that the automated systems haven’t made any errors. There are particular […]
Tools like salon payroll software can streamline payroll management and help you track employee work hours, benefits, and tax withholdings. Think of GlossGenius as the savvy personal assistant who never drops the ball. The platform integrates scheduling with financial management so seamlessly that you’ll wonder how you ever managed without it. With features like automated […]
It ensures the balance sheet remains accurate while details are clarified or adjustments are made. These accounts are designed to temporarily hold mortgage payments that are either incomplete or cannot be immediately applied to specific portions of the loan, such as principal, interest, taxes, or insurance. A suspense account is a temporary account used in […]
In a matter of minutes, you can set up all of the accounts you need and start keeping track of your incomings and outgoings. FutureAdvisor can be a very useful, free tool for those looking for software focused mainly on retirement planning and investment management. It’s technically classified as a robo-advisor, offering automated guidance on […]
Prepaid expenses are those paid in advance for goods or services to be received in the future. In cash basis accounting, these expenses are recognized when paid, whereas in accrual accounting, they should be recognized when the goods or services are received. Cash Basis Accounting is a method of bookkeeping where revenues and expenses are […]
While these drivers are commonly used, they are just general guidelines. There are situations where intuition must be exercised to determine the proper driver or assumption to use. Instead, an analyst may have to rely on examining the past trend of COGS to determine assumptions for forecasting COGS into the future. Please download CFI’s free […]
This type of journal entry is made to close temporary accounts (for instance, revenue and expense accounts) and transfer their balances to permanent accounts on the balance sheet (such as retained earnings). Closing entries are a necessary part of the accounting cycle as they allow businesses to generate financial statements and file tax returns every month and year accurately. […]
When Jane gets time and a half, her hourly rate increases to $18 per hour (12 x 1.5) for the extra hours she works. Don’t forget that this is the minimum figure, as laid down by law.An employer may choose a higher rate of overtime pay. Whatever it is, it has to fulfill national or […]