Category Archives: Bookkeeping

How Much Does a CPA Charge for Bookkeeping for a Small Business?

But before you do, let’s look at some questions you should ask yourself before making the decision. To learn more about the cost of bookkeeping, follow this small business guide. But who wants the task of sifting cpa bookkeeping services through receipts and organizing statements when there’s a whole slew of business operations to attend […]

Covenants Definition, Types, Example

The outcome can be detrimental for both parties, so early communication to avoid such scenarios is key. As a last resort if the borrower is unable to cure defaults, repay dues, or negotiate alternate terms, the lender may force the liquidation of their assets. This involves selling all assets, closing operations, and using the proceeds […]

Book Value vs Market Value: What’s the Difference?

Outstanding shares consist of all the company’s stock currently held by all its shareholders. That includes share blocks held by institutional investors and restricted shares. Book value is the amount found by totaling a company’s tangible assets (such as stocks, bonds, inventory, manufacturing equipment, real estate, and so forth) and subtracting its liabilities. In theory, book […]

8 2 Compute and Evaluate Materials Variances Principles of Accounting, Volume 2: Managerial Accounting

The same calculation is shown using the outcomes of the direct materials price and quantity variances. The combination of the two variances can produce one overall total direct materials cost variance. The difference between the expected and actual cost incurred on purchasing direct materials, expressed as a positive or negative value, evaluated in terms of […]

How to Read & Understand a Balance Sheet

The income statement would see a change to expenses, changing net income (loss). Net income (loss) is computed into retained earnings on the statement of retained earnings. This change to retained earnings is shown on the balance sheet under stockholder’s equity. If a company keeps accurate records using the double-entry system, the accounting equation will […]

How to Calculate Retained Earnings

In some cases, the repurchase may be seen as a sign of confidence and could increase the company’s common stock price and stockholder equity. But if done incorrectly, it can negatively impact existing shareholders’ equity sections and repel potential investors, harming your bottom line. The accountant will also consider any changes in the company’s net […]

2020 Review of GoSystem RS Tax Tax RS offers an excellent selection of help and support options, with users able to access help files from any screen in the application. A variety of online tools and resources are also available to users through the password protected website, including access to a robust user community. Users can also utilize the Help […]

Annual Recurring Revenue ARR Definition, Calculate

Both average return and ARR are commonly used methods of determining relative performance levels. Depreciation is a direct cost and reduces the value of an asset or profit of a company. As such, it will reduce the return of an investment or project like any other cost. Calculating ARR revenue is a good idea if […]

How Do I Calculate the P E Ratio of a Company?

Analysts use variations of the basic EPS formula to avoid the most common ways that EPS may be inflated. Don’t get lured by suspiciously high indicators when analyzing a company, as these might not represent the truth. Instead, you should aim to reach consistent growth on your investments. The forward EPS is calculated using projections […]

The accounting equation Student Accountant Students

Both liabilities and shareholders’ equity represent how the assets of a company are financed. If it’s financed through debt, it’ll show as a liability, but if it’s financed through issuing equity shares to investors, it’ll show in shareholders’ equity. Equity includes any money that has been invested into the company by shareholders as well as […]