So, What Exactly is a Chart of Accounts? Think of it as a master list of all the accounts your organization uses. Each account represents a different aspect of your finances, like assets, liabilities, revenue, expenses, and equity. Instead of drowning in paperwork, the chart of accounts neatly organizes everything, like having labeled drawers for …
Chart of Accounts. What is it? Why is it important? Read More »
Benefits Of Hiring Your Kids; Taxes & Beyond A part-time job is a great opportunity for kids to learn a new skill, learn about responsibility and also make a little extra money on the side. For years, family-owned businesses have benefited greatly by putting their children to work, not only to address labor …
Percentage Income Statement Introduction What is an income statement? An income statement is a financial statement that is used to summarize all the incomes and expenditures of a company over a given period. It takes into account the cumulative impacts of revenues, gains, expenditure, and loss transactions. The income statement is also known …
Inventory, What Counts as Inventory, How it is Accounted for and How that Affects Financial Reports What is Inventory? The term inventory has different meanings to different people. The word inventory has a different meaning in the UK and the USA. In American English and the context of accounting, the term inventory refers …
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Human Resources, Employees vs 1099, and other Employment Requirements What do you think is the role for the Human Resources (HR) managers? Do you know that HR is one of the biggest challenges when operating a business? Human resources personnel have a very critical role in keeping the business in compliance with regulations while …
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Business Valuation, 3 Methods, Basic Concepts of Each How do judges arrive at their results, especially in a dancing competition? What factors do they consider? This calls for the need for valuation. In the business world, understanding the outcomes of a valuation report can be a great challenge. They might be questions such as …
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Asset Tracking, What Counts as an Asset, How it is Accounted for, How that Affects Financial Reports, How Depreciation Works When you Sell an Asset. What is Asset Tracking? Also called asset management is the process of locating a firm’s physical assets by use of various means that include barcode labels, RFID or GPS to …
Use of Financial Reports, P &L, Balance Sheet and Cash Flow Statement. What each tells me About the Business. What are Financial Reports? Financial reports can be defined as financial statements that are prepared by business organizations to disclose crucial financial information to various stakeholders such as creditors, public, investors, government and regulatory agencies …
Applying the 80/20 Rule for Expenses What is the 80/20 Rule? The 80/20 rule is also called the Pareto principle. Having been invented by an Italian engineer, socialist and an economist, in general terms, the rule asserts that 80% of the output or results is generated by 20% of the input or the effort. …
Let us begin by looking at Goals, Financial and Enterprise Targets But What are Goals? Goals are simply defined as the aims or objectives that an enterprise or individual strives to accomplish within a certain period of time (Latham, Ganegoda and Locke, 2013). According to the goal-setting theory, the higher the goal, the higher the …
