Bookkeeping

Working capital turnover ratio is a crucial financial metric that measures a company’s efficiency in utilizing its working capital to generate sales revenue. It provides insights into how effectively a company manages its current assets and liabilities to support its operations. Understanding industry benchmarks and making comparisons can help businesses assess their performance and identify […]

A perpetual inventory system is superior to the more conventional periodic inventory system. Perpetual inventory systems allow immediate tracking of sales and inventory levels, except in cases where the perpetual inventory differs from the physical inventory count due to loss, breakage, or theft. A periodic inventory system is kept up to date by a physical

Businesses should strive for a turnover ratio that reflects their industry standards and aligns with their inventory models and business goals. Additionally, understanding and implementing the right stock management strategies for your business can significantly enhance inventory performance. To optimise this rate, it is essential to negotiate shorter lead times with suppliers, adopt just-in-time distribution

A higher APIC increases the equity base, potentially lowering the ratio and signaling a stronger equity position relative to debt. This can shape stakeholder perceptions, lending decisions, and credit ratings. While APIC itself is not taxable, stock issuance can have tax consequences under various jurisdictions. On its consolidated balance sheet as of January 31, 2023,

The thing is, these people don’t ever actually see any money from these shares. The reason net points are given so liberally is because they are, by all accounts, essentially meaningless. To ensure that there are no net profits in Hollywood, movies are contractually designed to be unprofitable, no matter how much they make. Once

Law firms, for example, reportedly saw an overall increase of 5% in the average collection cycle in 2023. Similarly, inflation also beginning inventory definition negatively impacts consumers and businesses, often resulting in longer average collection periods. Average collection period refers to how long it typically takes to collect payment from your customers after you’ve delivered

One can determine the break-even point in sales dollars (instead of units) by dividing the company’s total fixed expenses by the contribution margin ratio. In the long term, however, the aim is to regularly exceed this threshold in order to generate profits, invest in business development, and strengthen the company’s competitiveness. What’s more, the break-even

Additional factors to take into consideration include a company’s access to capital and why they may want to use debt versus equity for financing, such as for tax incentives. For growing companies, the D/E ratio indicates how much of the company’s growth is fueled by debt, which investors can then use as a risk measurement

Job cost accounting allows you to analyze historical data from similar projects to create precise estimates for labor, materials, and equipment. In this guide, we’ll break down what job cost accounting is, why it’s so critical in construction, and how you can implement it effectively with the right tools and strategies. By comparing estimated vs.

Enabling businesses to stop wasting valuable time on coding & data entry. Get your key financial systems and reports set up, optimized, and working for your business. Sometimes whether you realize it or not, some transactions in US Dollars are actually run through another country such as Canada. We love new challenges!Let’s get started. With