Bookkeeping

When a business sells a product, it needs to know if it is making money, and employees need to know how their pay is calculated. Merchandise may need to be returned for a variety of reasons, including defects, damages or wrong sizes. The…

For normal day-to-day business analysis, owner’s equity is both a valuable indication of a business’s financial health and a way to track whether the company is gaining or losing value over time. Many owners use equity to demonstrate their…

It’s easier to sync with your internal systems and pivot quickly for policy updates or restructurings. You’re building up your own expertise, establishing instant communication, and not relying on a third party, especially if that third…

To prevent another build-up of out-of-date data and disorganized files, set a regular maintenance plan in place. Whatever your goals and timelines look like, communication is key. Keep the client looped in through the whole process with…

Below is a portion of ExxonMobil Corporation's income statement for fiscal year 2023, reported as of Dec. 31, 2023. The interactive activity below contains the last row of our spreadsheet (the “Balance” row with the totals for each…

However, the debit to the sales returns and allowances account ultimately subtracts $10 from your revenue, showing that you actually only earned $40 for the shirt. To record a returned item, you’ll use the sales returns and allowances…

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A stock split is an action taken by a company to divide its existing shares into multiple shares. For instance, if a stock is trading at $100 per share and the company initiates a two-for-one stock split, a holder of 100 shares…

To get the most information out of your AP turnover ratio, complete a full financial analysis. You’ll see how your AP turnover ratio impacts other metrics in the business, and vice versa, giving you a clear picture of the business’s…

This control over your finances helps you manage your spending and offers you peace of mind. Debit cards can be a good choice for anyone with a checking account since they provide easy access to your money and don’t need to be reloaded. If…