Categoria: Bookkeeping

Then, when you finally choose to update your prices to include the true cost of your work, the client could be confused, angry, and you could potentially lose their trust. It’s essential for receiving payments on time and having accurate records of your business finances. To ensure you get paid as quickly as possible for […]

It is related to summarizing the recorded transactions, interpreting them and then communicating their results. Bookkeeping does not depict the operating results of a business, whereas accounting indicates the operating results of a business. Bookkeeping traditionally referred to financial record-keeping but the remit is growing. These external reports must be prepared in accordance with generally […]

Centimeter is considered a common unit of length used in SI. It is equivalent to 10 millimeters or 1/100th (10-2) of a meter. Years ago it was a basic unit in formerly used CGS (centimeter-gram-second) unit system, but in modern times the role of basic unit of length is played by meter. The length in […]

After all there are many factors, activities, and drivers that influence the level of costs. For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing. Finance Strategists has an advertising relationship with some of the companies included on […]

This means that for every dollar generated, $0.3826 would go into the cost of goods sold, while the remaining $0.6174 could be used to pay back expenses, taxes, etc. In today’s competitive market, focusing on cost efficiency is essential. You can ensure your business remains financially robust and competitive by continuously improving your Gross Profit […]

A portion of each mortgage payment is dedicated to repayment of the principal balance. Loans are structured so the amount of principal returned to the borrower starts out low and increases with each mortgage payment. The payments in the first years are applied more to interest than principal, while the payments in the final years reverse that […]

Cumulative preferred stock is good to have when a company encounters financial hardship and then recovers. After the recovery, the cumulative preferred stock shareholders get to catch up on the payments they did not receive. Unlike bondholders, failing to pay a dividend to preferred shareholders does not mean a company is in default. Because preferred shareholders […]

The net profit margin reflects a company’s overall ability to turn income into profit. The infamous bottom line, net income, reflects the total amount of revenue left over after all expenses and additional income streams are accounted for. This includes not only COGS and operational expenses, as referenced above, but also payments on debts, taxes, […]

Discounted cash flow analysis (DCF) is a technique used in finance to value security, project, business, or asset utilizing the ideas of the time value of money. The annual return rate taken into account after taxes and inflation is the real rate of return. First, it tries to give the returns a standardized mathematical form […]

For this reason, there are several broad groups that most accountants can be grouped into. Whereas you might only periodically consult your accountant, a bookkeeper touches base more frequently and handles daily accounting tasks. Regardless of who you hire, knowing basic accounting principles can help you understand your business better and have more productive conversations […]