Category: Bookkeeping

For example, if XYZ Company paid $50 million to acquire a sporting goods business and $10 million was the value of its assets net of liabilities, then $40 million would be goodwill. Companies can only have goodwill on their balance sheets if they have acquired another business. Consequently, if an intangible asset has a useful […]

Freelance accountants can search for a job online or they can also let the job find them. We’ll tackle the active job search later and now let’s take a look at other marketing strategies. What really sets Toptal apart is the caliber of finance talent available in their network. I had a very specific and […]

Examples of current assets include cash, cash equivalents, accounts receivables, prepaid expenses or advance payments, short-term investments and inventories. Unlike the income statement, the balance sheet does not report activities over a period of time. The balance sheet is essentially a picture a company’s recourses, debts, and ownership on a given day. This is why […]

The amount of consumption tax collected by the freelancer is deducted by the business from its collections. Taxing things doesn’t just magically reduce them in isolation, it reduces them by reducing the net marginal value realized from each marginal increment. At the same marginal rate, a consumption tax reduces the incentive for additional work just […]

If the management at a later date decides to decrease the balance in the petty cash account, the previous entry would be reversed, with cash being debited and petty cash being credited. Recording and tracking your petty cash and credit card spending with the same software will mean that all expenses are centralised under one […]

Understanding each company’s size, sector, and goal is pertinent to interpreting its ratio. For the example above, company A is a well-established, stable company. Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise. This team of experts helps Finance Strategists maintain the highest level […]

These expenses can include raw materials, labour, equipment, rent, and marketing costs. In simple terms, it is the sum of all expenses necessary to produce and sell a product or service. The average cost is determined by the total cost of one unit in your production line. You can calculate the average cost by figuring […]

In the end, it does not guarantee absolute, but it tries to bring decision makers to the right decision that can be taken regarding a loan request as much as possible. Conducting this analysis relies on information; the more accurate this information is, the more precise the results are. From the lender’s point of view, […]

Common examples of assets leased through operating leases include office space, vehicles, equipment, and machinery. Operating leases are prevalent in industries where frequent upgrades or changes in technology are common, such as technology, transportation, and healthcare. Present value refers to the total value of unpaid lease payments over the course of the lease term. For […]

Sage has many help options to get you through it, including excellent online help. Premium Accounting, which I used for testing, starts at $96.58 per month for a single user and goes up to $222.25 per month for five users. Quantum Accounting starts at $152.42 per month for one user; a five-user subscription costs $301.08 […]