Category: Bookkeeping

Reconciling Account Overview, Process, How It Works

Accurate and timely accounting is essential for the successful management of any business. It involves ensuring that an organization’s record of all transactions is accurately captured in its accounts and ledgers. It is critical to ensure that financial reports accurately reflect the current state of the company’s finances. This is how the account balances for […]


What are Investing Activities? Definition Meaning Example

Overall, the cash flow statement provides an account of the cash used in operations, including working capital, financing, and investing. However, negative cash flow from investing activities might be due to significant amounts of cash being invested in the long-term health of the company, such as research and development. Here’s a short list of common […]


What is an Accrued Expense? Example, Video Explain

Most companies offer delayed accounts payable and delayed accounts receivable programs, allowing loyal customers to enjoy goods and services now, and pay later. This flexibility helps stimulate ongoing revenue streams that positively impact a company’s bottom line over the long haul, even if no cash is immediately received. Under the accrual accounting principle, a business […]


Become a freelance accountant or financial consultant

The takeaway from those numbers is that there isn’t a huge difference in annual salary for most freelance and salaried accountants. There is, however, greater potential on the high end for freelancers, which is great news if corporate accounting isn’t a great fit for you, or if you have the desire to work for yourself. […]


Operating Ratio: Definition and Formula for Calculation

It shows how much it costs for a company to make one dollar of revenue. This metric is especially useful when comparing profitability among different companies or industries with varying cost structures. The 3 margin ratios that are crucial to your business are gross profit margin, operating profit margin, and net profit margin. As previously […]


The 6 Decision-Making Frameworks That Help Startup Leaders Tackle Tough Calls

When using gradients of agreement, those casting a vote can signal their enthusiasm by selecting from multiple options along a scale of declining approval. LinkedIn’s Performance Team uses this one for important decisions that have urgency, require horizontal collaboration across the organization, and represent a significant ROI. When a lone individual is responsible for making […]


Income Statement

It only includes revenues related to the core functions of the business and excludes revenues that are unrelated to the main activities of the business. The main components of the income statement accounts include the revenue accounts and expense accounts. Some of the components of the owner’s equity accounts include common stock, preferred stock, and […]