Bookkeeping

QuickBooks Pro lets you set up inventory items so that you can track what you have on hand and how much you’ve spent and earned with it. When you sell a product, the program records both purchase (COGS) and sales revenue in a single entry. This helps you easily track and analyze your gross profit […]

Gross means the total or whole amount of something, whereas net means what remains from the whole after certain deductions are made. For example, a company with revenues of $10 million and expenses of $8 million reports a gross income of $10 million (the whole) and net income of $2 million (the part that remains

Retained earnings are a clearer indicator of financial health than a company’s profits because you can have a positive net income but once dividends are paid out, you have a negative cash flow. It’s important to note that retained earnings are cumulative, meaning the ending retained earnings balance for one accounting period becomes the beginning

Each option offers different features, strengths, and weaknesses, so consider each to choose the best solution for your business. One of the key benefits of FreshBooks is its mobile apps, which allow small trucking businesses to manage their finances on-the-go. The apps are available for both iOS and Android devices and offer features such as

Financial reporting involves preparing and disseminating financial statements like the balance sheet and income statement, conveying a company’s financial status to stakeholders. It aids investors, bookkeeping vancouver creditors, and management in decision-making by providing insights into performance and trends. Compliance with accounting standards like GAAP or IFRS ensures consistency and transparency. Understanding the unique needs

If an individual or business entity is selected for an audit by the Internal Revenue Service (IRS), the taxpayer must produce records to affirm the information listed on the selected tax returns. The audit might include a positive confirmation request for all sources of income, verification of applicable deductions taken, and proof of claimed gains

These numbers and the financial ratios or indicators derived from them are easier to understand if you can visualize the underlying realities of the fundamentals driving the quantitative information. For example, before you start crunching numbers, it’s critical to develop an understanding of what the company does, its products and/or services, and the industry in which it operates. However, the diversity

As technology continues to advance, embracing innovative payment solutions, such as blockchain technology, can further elevate the effectiveness and security of your cash discount initiatives. Remember, in the competitive business landscape, a well-implemented cash discount strategy not only benefits your bottom line but also strengthens your relationships with valued customers, paving the way for sustainable

In theory, COGS should include the cost of all inventory that was sold during the accounting period. In practice, however, companies often don’t know exactly which units of inventory were sold. Instead, they rely on accounting methods such as the first in, first out (FIFO) and last in, first out (LIFO) rules to estimate what

Small Business Bookkeeper Richmond Hill will ensure that you do not miss key business deductions. Keeping records of business expenses organized sounds simple enough until they get lost. And when these kinds of mistakes happen, business transactions often end up improperly categorized or not recorded at all. They were spending too much time and money