Bookkeeping

By using both vertical and horizontal analyses, businesses can gain a better understanding of their financial position and performance. Performing a vertical analysis of a company’s cash flow statement represents every cash outflow or inflow relative to its total cash inflows. Vertical Analysis is a form of financial analysis where the line items on a company’s […]

It is one of the most widely traded securities in the world, and understanding how to calculate common stock is essential for investors, analysts, and business professionals. In this article, we will provide a step-by-step guide on how to calculate common stock, including the formula, components, and examples. Before we dive into the calculation, it’s […]

When considering ROE as a measurement of financial health, investors should look at how the company is leveraged. When a company takes on more debt, it dilutes shareholders’ equity by increasing liabilities. Here are gearing ratios typically used by SMBs and their advisors to measure their financial leverage and risk. Each looks at different aspects […]

These stakeholders are directly involved in planning, controlling, and evaluating business activities. In contrast, management accounting is intended for internal decision-makers, providing detailed information to help managers make strategic decisions. Financial accounting is designed for external stakeholders such as investors, creditors, and regulators. This equation must always balance as it reflects that all assets are […]

A predetermined overhead rate is calculated at the start of the accounting period by dividing the estimated manufacturing overhead by the estimated activity base. The predetermined overhead rate is then applied to production to facilitate determining a standard cost for a product. The predetermined overhead rate allocates estimated total overhead for an accounting period across […]

In this case, it assumes that every business has different activities that cover a given period, normally in months or years, thereby ensuring proper and timely reporting. This assumption is based on the existence of a business that such transactions of the business must be separated from any one of its owners or 5 accounting […]

It’s better for savers or investors to have a higher EAR, though it is worse for borrowers to have a higher EAR. In either case, the EAR will likely be higher than the nominal rate; it may be more strategic to understand how the EAR has changed in recent history and what trends look like […]

However, before making any business decision, you should consult a professional who can advise you based on your individual situation. Let us help your business find the best tools and solutions to thrive and grow. Entrepreneurs and industry leaders share their best advice on how to take your company to the next level. When starting […]

Let me help you by doing what I’m good at so that you can get back to doing what you’re good at. Your accountant can help you create a budget or in some cases, even plan your finances. You can set up an appointment to talk about your finances, goals, income, and expenses. We also […]