Category: Bookkeeping

Introduction Business process outsourcing (BPO) occurs when a business outsources departmental duties to an outside vendor. Learn why outsourcing should be part of your 2025 strategic plan with this analysis of market conditions, outsourcing trends, and cost pressures coupled with rising consumer accrued expenses expectations. A well-maintained website is a critical component of any successful… Continue reading 30 questions to ask your outsourcing provider

Then you can use the saved budget for other operations, like marketing. In addition to that, your team will have more time to focus on more important tasks. Overall, assigning a third party to do side tasks not only increases productivity but also lets you spend your funds where you need it the most. Choosing… Continue reading What is Outsourcing? Definition, Benefits, Challenges, and More

In general, if a company’s D/E ratio is too high, that signals that the company is at risk of financial distress (i.e. at risk of being unable to meet required debt obligations). The quick ratio measures the capacity of a company to pay its current liabilities without the need to sell its inventory or acquire… Continue reading Debt to Equity Ratio Calculator Formula

In the banking and financial services sector, a relatively high D/E ratio is commonplace. Banks carry higher amounts of debt because they own substantial fixed assets in the form of branch networks. Higher D/E ratios can also tend to predominate in other capital-intensive sectors heavily reliant on debt financing, such as airlines and industrials. Quick… Continue reading Debt-to-Equity D E Ratio Formula and How to Interpret It

Managers at ABC Cabinets would conclude from segment analysis that the fixtures segment is more profitable because it has a higher contribution margin. Using the formulas above, they could also see that the cabinet segment needs to generate almost double the sales compared to the fixtures segment to reach the break-even point. In this article,… Continue reading Contribution margin income statements: a complete guide 2024

At the bottom of your income statement, you’ll calculate your company’s net profit or loss for the time frame of the report. For example, if your income statement covers the past year, this section of your report will show how much money your business made or lost during that time. Both the income statement and… Continue reading Financial Statements

Tax management in e-commerce involves navigating global transactions. Many e-commerce businesses sell to customers worldwide, requiring an understanding of diverse tax regulations. Paying attention to these regulations is vital for legal compliance and financial stability, especially in the international marketplace. Unless you have an extremely tight budget or extensive financial experience, accounting and bookkeeping is… Continue reading Bookkeeping for Amazon Sellers

This account is a non-operating or “other” expense for the cost of borrowed money or other credit. A word used by accountants to communicate that an expense has occurred and needs to be recognized on the income statement even though no payment was made. The second part of the necessary entry will be a credit… Continue reading 4 3 Record and Post the Common Types of Adjusting Entries Principles of Accounting, Volume 1: Financial Accounting

Annual income is the total amount of income you earned in a calendar year or fiscal year before taxes and deductions. If you live with a spouse or family members, you may need to combine your annual salary and additional income with theirs to arrive at what is known as your household income. Once you… Continue reading Calculate Your Yearly Salary

Goodwill amortization is when the cost of the goodwill of the company is expensed over a specific period. Amortization is usually conducted on a straight-line basis over a 10-year period, as directed by the accounting standards. There are several steps to follow when calculating amortization for intangible assets. Let QuickBooks accounting keep you organized and… Continue reading Amortization Meaning, Formula, Example, Types, vs Capitalization