Contrary to popular usage, bi-weekly does not mean twice in the same week. So many speakers and writers use the term this way that there is now widespread confusion regarding the true meaning of the term. You then calculate overtime…
As the tables show, this business made a profit during the accounting period. As a result, the business credited its revenue account more than it debited its expenses account, leading to a credit balance. All companies have revenue and expense…
They can predict how costs will change with production shifts, leading to more accurate budgeting and planning. If you’re running or starting a UK business, it’s crucial to get to grips with accounting. One of the most important things to…
The payment of accounts receivable can be protected either by a letter of credit or by Trade Credit Insurance. Efficient AR and accounts receivable management processes are critical to any business’s ability to function. But it can be difficult to…
In fact, one survey found that 35% of self-employed contractors stress out about making an accounting mistake. 1% of revenue gets you in the right ballpark range what is outsourced accounting as your business approaches $1M in revenue. The obvious…
However, it is crucial to remember that balance sheets communicate information as of a specific date. Here is a quick reference for the key differences between the balance sheet and income statement, summarizing what we’ve discussed above. The fourth financial…
On the other hand, some may assume that a credit always increases an account. This incorrect notion may originate with common banking terminology. Assume that Matthew made a deposit to his account at Monalo Bank. Monalo’s balance sheet would include…
The savings that outsourcing usually provides can be quite considerable as most companies can offer their services at lower cost rates (typically due to lower labour costs at their location). Our clients who are outsourcing accounting is willing to reduce…