Examples of activity ratios are inventory turnover ratio, total assets turnover ratio, fixed assets turnover ratio, and accounts receivables turnover ratio. It is crucial to remember that some ratios will require information from more than one financial statement, such as…

Set up check-ins with your provider every once in a while to discuss the partnership and convey expectations. When working with any service provider, it’s important to establish service-level agreements (SLAs). These lay out the specifics of the services provided…

The absence of continuous updates can make it difficult for businesses to maintain accurate inventory records, leading to potential errors and inefficiencies. Perpetual inventory systems offer the advantage of real-time inventory updates, enabling businesses to monitor purchases and sales instantly.…

Offering flexible options results in improved customer satisfaction and quicker payments. – An invoice acts as a legal document to help you comply with American tax regulations such as Internal Revenue Service (IRS) rules and state-specific tax requirements. It also…

You don’t have to be an accountant to easily understand how to create pay stubs. However, understanding the foundations can help you choose the best pay stub solution for your business today. A free payroll check template is ideal for…

Depreciation Tax Shield is the tax saved resulting from the deduction of depreciation expense from the taxable income and can be calculated by multiplying the tax rate with the depreciation expense. Companies using accelerated depreciation methods (higher depreciation in initial…

In this case, Speakers, Inc. uses its cash to buy another asset, so the asset account is decreased from the disbursement of cash and increased by the addition of installation equipment. When a company purchases goods or services from other…

While you may be an expert at marketing or operations, don’t underestimate the importance of small business accounting. Without a clear financial picture, it can be difficult to move your business forward. This can be as simple as a statement…