At the end of each accounting period, a company will have to account for various liabilities that represent the lines of loss and expenses. They are various in nature, hence the neutral word ‘liability’ is used in these instances.The accrued payroll... Read more
FIFO & LIFO approaches can be hard to understand because even though they are clearly different, they don’t seem to make a lot of sense at first. Why distinct them, and what use are they? You’ll have to understand what they are before getting int... Read more
When evaluating any company’s financial condition, accounting for the Stockholders’ Equity, among other things, is a good way of understanding just how well the company is doing in the long run. It’ll help you understand if the company is well at the... Read more
When going through the company’s finances, one will often encounter the phrase ‘Operating Expenses’ alongside many other expenditure types that together amount to the company’s overall expenses. In turn, total losses subtracted from the income would... Read more
There are various ratios used by financial adepts to determine how well the company is doing in a particular field compared to some fundamental factor. The asset turnover ratio, for instance, estimates how effectively the company uses its assets.Whil... Read more
What is the liquidity ratio?The attractiveness of an enterprise for customers and creditors is traditionally assessed through the analysis of financial statements. Analysis of liquidity indicators is necessary both for the internal needs of enterpris... Read more
OverviewThere are numerous financial reports that a company can prepare. Each presents different financial information and serves a different purpose. Financial analysts, for instance, rely on financial reporting data to measure performance and predi... Read more
Debt to asset ratioThe financial condition of the company is a condition for its activity and the key to a stable position in the market. It reflects the state of financial resources that allow the company to freely maneuver money, to ensure an unint... Read more
Advantages of outsourced bookkeepingToday, many business owners increasingly prefer to outsource the bookkeeping work of their company. The advantages in monetary savings over a full-time accountant are obvious. But is it only money that makes a diff... Read more
Gross marginIn the course of its activity, every business owner has to calculate different financial indicators to know where to guide its small business. They are needed to assess the results of its work and identify the level of profitability. One... Read more
