Category: Bookkeeping

To wreck something is to destroy, ruin, or severely damage it. The ruin or destruction of a vessel in the course of navigation; shipwreck. Usually I keep my emotions in so when I get to a point I’m so pissed, all my emotions come out at once.” — Jo L. “Laughing nervously or like really… Continue reading Emotional Breakdown: Symptoms, Causes, and Coping

Similar to its payroll processing features, Wave Payroll offers just enough employee management and PTO features to be functional. Wave Payroll’s simple, low-cost features may be basic but they’re well-suited for small businesses needing an affordable all-in-one accounting and payroll solution. You don’t have to wait for a new quarter or year to start using… Continue reading Wave Payroll & HRB Canada

In 2020, the company’s ending accounts delinquent( A/ R) balance was$ 20k, which grew to$ 24k in the posterior time. By benchmarking against the industry standard, a company can gauge easily whether the number is acceptable or if there is potential for improvement. If the average A/R balances were used instead, we would require more… Continue reading What Is the Average Collection Period and How Is It Calculated?

A longer period could hurt your business, while a shorter one keeps things running smoothly. Read on to learn what the average collection period is, how to calculate it, and how it can help you manage your finances more effectively. A longer average collection period can lead to cash flow problems, as it takes longer… Continue reading How to calculate average collection period: A guide for AR managers

Your business will need to credit one account and debit another account with the correct amounts using the double-entry accounting method. In terms of accounting for unearned revenue, let’s say a contractor quotes a client $5,000 to remodel a bathroom. If the contractor received full payment for the work ahead of the job getting started,… Continue reading What Is Unearned Revenue? A Definition and Examples for Small Businesses

Baremetrics is a business metrics tool that provides 26 metrics about your business, such as MRR, ARR, LTV, total customers, and more. To determine when you should recognize revenue, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) presented and brought into force ASC 606. Baremetrics provides an easy-to-read dashboard that gives… Continue reading What Is Unearned Revenue? A Definition and Examples for Small Businesses

Direct labor variance is a financial metric used to assess the efficiency and cost-effectiveness of a company’s labor usage. It measures the difference between the actual labor costs incurred during production and the standard labor costs that were expected or budgeted. This variance can provide valuable insights into how well a company is managing its… Continue reading Direct Labor Variance: What is a Labor Rate Variance vs a Labor Efficiency Variance?

This is a favorable outcome because the actual hours worked were less than the standard hours expected. If the actual rate of pay per hour is less than the standard rate of pay per hour, the variance will be a favorable variance. If, however, the actual rate of pay per hour is greater than the… Continue reading 10 7 Direct Labor Variances Financial and Managerial Accounting

Investors contribute their share of paid-in capital as stockholders, which is the basic source of total stockholders’ equity. The amount of paid-in capital from an investor is a factor in determining his/her ownership percentage. A cash-out refinance is a bit different as you replace your current mortgage with a new, larger mortgage loan. Interest rates… Continue reading Shareholder’s Equity Formula How to Calculate Stockholder’s Equity?

The number of shares issued and outstanding is a more relevant measure than shareholder equity for certain purposes, such as dividends and earnings per share (EPS). This measure excludes Treasury shares, which are stock shares owned by the company itself. Shareholders’ equity includes preferred stock, common stock, retained earnings, and accumulated other comprehensive income. An… Continue reading Shareholders Equity Definition, Formula, Calculate