At the time dividends are declared, the board establishes a date of record and a date of payment. The date of record establishes who is entitled to receive a dividend; stockholders who own stock on the date of record are entitled to receive a accumulated depreciation dividend even if they sell it prior to the …
Category Archive: Bookkeeping
mei 14 2025
Standard Costing and Variance Analysis
If the quantity of direct materials actually used is less than the standard quantity for the products produced, the company will have a favorable usage variance. The amount of a favorable and unfavorable variance is recorded in a general ledger account Direct Materials Usage Variance. (Alternative account titles include Direct Materials Quantity Variance or Direct …
apr 17 2025
Amortization and Depreciation on Income Statement
And how we account for that working capital is important to understand the company’s path to increased revenue growth. Instead of recording the purchase of an asset in year one, which would reduce profits, businesses can spread that cost out over the years, allowing them to earn revenue from the asset. Even smaller businesses can …
apr 16 2025
Contribution Margin: What it is and How to Calculate it
Do these labor-saving processes change the cost structure for the company? It is important to note that this unit contribution margin can be calculated either in dollars or as a percentage. To demonstrate this principle, let’s consider the costs and revenues of Hicks Manufacturing, a small company that manufactures and sells birdbaths to specialty retailers. …
feb 21 2025
QMS: calculating the cost of quality
Redzone’s software provided instant visibility into production performance, enabling rapid response to issues and data-driven decision-making. In order to meet quality expectations, you need to monitor your processes and track metrics in order to catch issues and address them quickly before they negatively impact the project. Our real-time dashboard automatically collects live project data and …
feb 21 2025
The Cost of Quality
The cost incurred in maintaining the cost of quality is significant. As a result, firms or entities often think o implementing ways to reduce this expense. However, reduction in the quality cost is not about compromising with the product or service quality. The appraisal costs can be regarded as the costs that the business incurs …
nov 28 2024
Free Accounting Software for Personal Use: Top 10 Tools
Your team of financial professionals will need to be able to access your books easily and with minimal risk of error. Check with your bookkeeper or accountant before choosing software. While accountants typically work with paid products like QuickBooks Online or Xero, they may be familiar with some of the free ones listed here, too. …
nov 27 2024
Free Accounting Software for Small Businesses
These options were also always available to me wherever I was in the platform via a slide-out left-hand menu. On the project discussion forum accessible from a project’s page, I could even attach documents such as checklists, and the entire team could discuss the project via a chat-like feed. Once I finalized the invoice, I …
okt 09 2024
Difference Between Depreciation and Amortization: Know Difference
This method is more suitable for assets expected to have a higher usage level and benefits in the early years of their useful lives. Mastering amortization calculations and schedule preparation is key for business owners to avoid misrepresentation of assets and future income expectations. Having a firm grasp of these principles will enable you to …
okt 09 2024
Accounting for Depreciation: Methods, Journal Entries, and Financial Impact
The accounting profession has addressed this situation with a mechanism to reduce the asset’s book value and to report the adjustment as an impairment loss. Over the life of the equipment, the maximum total amount of depreciation expense is $10,000. However, the amount of depreciation expense in any year depends on the number of images. …
feb 12 2024
Accounting Rate of Return Definition, Formula Calculate ARR
On the other hand, the Required Rate of Return (RRR) represents the minimum return an investor or firm expects from an investment to justify its risk. It reflects opportunity costs and incorporates factors like the time value of money, risk premiums, and inflation. Unlike ARR, RRR is often used in discounted cash flow models like …
feb 12 2024
What is Accounting Rate of Return ARR: Formula and Examples
ARR can be problematic in that it is subject to accounting policies which will vary from one organization to another and can be subject to manipulation. This means that ARR treats all profits equally, regardless of when they are earned. Unlike metrics such as Net Present Value (NPV) or Internal Rate of Return (IRR), ARR …
jan 10 2024
Small Business Bookkeeping 2024 Guide
For the vast majority of businesses, the job of bookkeeping is too small for a department but too much for the owner. If you want your business to save time and money, then you should consider hiring a bookkeeping service. A bookkeeping service can help you stay organized and on top of your finances. For …
jan 10 2024
Online Bookkeeping Services for Small Businesses Bench Accounting
For complete information, see the terms and conditions on the credit card, financing and service issuer’s website. In most cases, once you click “apply now”, you will be redirected to the issuer’s website where you may review the terms and conditions of the product before proceeding. Pilot is a finance, accounting, and tax services firm …
nov 23 2023
Nonprofit Financial Statements And Reporting Sage Advice US
Donations can come from individuals, corporations, or other entities, often driven by the desire to support the organization’s mission. These donations may be one-time gifts or recurring contributions, and they can vary in amount from a few dollars to significant sums. Grants, on the other hand, are typically funds provided by foundations, government agencies, or …
feb 10 2023
How to Prepare a Master Budget: A Step-by-Step Guide for Businesses
To avoid this mistake, businesses should thoroughly review their expenses and ensure they have included all relevant costs in their budget. Businesses make several common mistakes when creating their master budgets, Bookkeeping for Veterinarians leading to inaccurate or unrealistic financial projections. Here are some of the most common mistakes businesses make when creating a master …
jan 13 2023
Wie sich die LIFO Reserve auf die Bestandsbewertung und Rentabilitaet auswirkt
By measuring changes in the size of the LIFO reserve over several periods, you can see the impact of inflation or deflation on a company’s recent inventory purchases. This is also a good measure of the extent to which a company’s reported gross margin is subject to inflationary pressures. First, the cost of inventory under …
jan 13 2023
Examples of Long-Term Liabilities and Their Financial Impact
Current liabilities are used by analysts, accountants, and investors to gauge how well a company can meet its short-term financial obligations. Unearned RevenuesUnearned revenues represent advance payments received for goods or services that have not yet been delivered or fully earned. Once the product or service is supplied, the unearned revenue liability decreases as the …
dec 30 2022
Average Collection Period: Understanding Its Importance in Business Finance
This expediency means that customers are paying their dues quickly, which can be a sign of an adequate credit and collections policy and solid customer creditworthiness. It’s a sign that a company has a healthy cash flow, enabling it to reinvest in the business, settle its obligations on time, and maintain a buffer against financial …
dec 30 2022
Construction Bookkeeping: Essential Tools & Tips
Here are some things to keep in mind when bookkeeping for construction firms. For one, payroll for construction is more complex, and involves much more than agreeing on a flat rate for every project. Projects like government-funded projects require you to pay a prevailing wage, a minimum hourly rate that’s typically higher and determined by …
dec 29 2022
Construction Bookkeeper Job Description
Do your due diligence as a business owner and take the time to understand these requirements verbatim. This method should be used if revenues and costs of a project can be accurately estimated and all parties involved are expected to be able to complete all of their respective duties. From a technical level, WIP is …
dec 29 2022
Average Collection Period & Days to Collect Calculator
Most of the time, this signals that the management has prioritized investment in collections and improved the collections processes. Alternatively, you can divide the number of days in a year by the receivables turnover ratio calculated previously. To find how long it takes for Rosie Dresses to collect the money its customers need to pay for the goods already …
sep 23 2022
Weighted Average Cost of Capital WACC: Definition and Formula
For other types of debt, the average interest rate is a simpler and equally effective metric. In the realm of financial analysis, understanding the cost of debt is crucial for evaluating a company’s financial health and making informed decisions. The cost of debt represents the expense a company incurs by borrowing funds from external sources. …
sep 22 2022
Unit Cost: What It Is, 2 Types, and Examples
This calculation helps businesses set appropriate prices and manage their production costs more efficiently. By dividing the total cost of production by the number of units produced, one can determine the cost per unit, providing critical data for financial analysis and decision making. A unit cost is the total expenditure spent to produce how to …
aug 15 2022
B2B Marketing Automation Guide in 2024 Strategies, Tools & Examples
The on-boarding sequence of e-mails can really make a difference in customer success rates. Moreover – automation can be integrated with your SaaS application on API level and proactively help customers if they have difficulties with certain aspects of your product. Here’s a closer look at the step-by-step process of implementing B2B payment automation in …
aug 12 2022
What Is A Purchase Order? Plus 6 Best Practices For A PO System
To fully appreciate the modern way of managing purchase orders, it’s important for you to understand where these also all began. You might opt to approach creating a purchase order manually because you only have a limited number of purchase orders to work with. Because of this, you can easily create a personalized system for …
jul 18 2022
Construction Accounting Services Bookkeeping CPA Nashua NH
We understand that managing finances can be challenging, but we’re here to make it simple, so you can focus on what truly matters – growing your business. The NHSCPA has not verified or validated the information each firm/business has listed. The accuracy of the information listed is solely the responsibility of the party, not of …
jul 18 2022
Construction Bookkeeping Tips to Maximize Contractor Success
Some solutions, like Hubstaff, offer a free trial to provide you with an opportunity to test the software and determine if it’s the right fit for your needs. If you decide to hire an accountant, look for one with experience in your industry because they’ll know how to handle your company’s accounting needs most effectively. …
jul 08 2022
How to Calculate Income Summary for Closing
In other words, the income summary account is simply a placeholder for account balances at the end of the accounting period while closing entries are being made. At the end of a period, all the income and expense accounts transfer their balances to the income summary account. The income summary account holds these balances until final closing …
apr 23 2021
Bookkeeping for Nonprofits: A Basic Guide & Best Practices
The Nonprofit Bookkeeper oversees accounting services for nonprofit organizations day-to-day financial transactions, adhering to nonprofit accounting standards. With features like bill and invoice reminders, bank connections, and a receipt scanning app, you can invest more time in making a difference and less in your nonprofit accounting software. Our clients are provided a deeply-discounted subscription to …
mrt 05 2021
Outsourcing Accounts Payable: The Pros and Cons
Outsourcing your accounts payable function resolves these challenges and more, with Deloitte reporting that 65% of successful organizations include outsourcers in their delivery model. Being able to hand over crucial AP responsibilities may be good but it comes at a cost. The fact is you become heavily dependent on the outsourcing provider for accounts payable services that …
feb 17 2021
How Much Do Bookkeeping & Accounting Services for Nonprofits Cost?
We’ll talk about picking the right bookkeeping software, understanding financial statements, and keeping your finances healthy. This guide is for everyone, whether you’re new or experienced in nonprofit bookkeeping. Bookkeeping helps track your money to follow the law and make smart choices. Financial ratios help nonprofits measure the financial health of the organization. Simplify bookkeeping …
jan 11 2021
How to bill a client: An easy agency guide to payments
Once your proposal is sent, and your client agrees to the costs and deliverables, it’s time to make it official with a written contract. But that feeling of excitement can quickly turn into overwhelm if you don’t have a standard operating procedure for following up with a proposal or statement of work (SOW). Starting your …