A cabinet filled with crucial customer details is also easier to access than a computer that requires a password and credentials to open. Despite running a small business, owners should not make the mistake of performing their accounting duties on…
Let’s look at what entries are passed in the journal for notes payable. Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and…
Wholesale companies typically deal with higher volumes of inventory than retail businesses. They might monitor their inventory-to-sales ratio to align with fluctuating supply chain dynamics and bulk purchasing patterns, which might differ from the more direct sales patterns in retail.…
The company has use of the vehicle for the entire prior month, and is, therefore, able to use the vehicle to conduct business and generate revenue. Another variation uses earnings before interest after taxes (EBIAT) instead of EBIT in interest…
When using the cost principle, an asset’s value is easy to determine. This means that the historical cost principle must be used to maintain compliance in accounting in Canada. In addition to this, there are some benefits to using the…
When using the cost principle, an asset’s value is easy to determine. This means that the historical cost principle must be used to maintain compliance in accounting in Canada. In addition to this, there are some benefits to using the…
I started my career in consulting before a detour into an entrepreneurial venture inspired me to choose a different path. As the head of finance at four startups, I developed a deep passion for company-building but was frustrated by the…
This is because consistently strong positive cash flow can indicate the potential for increased profitability, which can yield promising returns for the investor, therefore making it a more enticing investment. Operating cash flow refers to the amount of cash generated…
Those who are struggling with recording contra accounts may benefit from utilizing some of the best accounting software currently available. The allowance method of accounting allows a company to estimate what amount is reasonable to book into the contra account.…
Our financials in the pitch deck don’t need every last detail just the categories that are most important, so it’s fine to combine all remaining costs assuming they are not a major contributor. Our assumption for the pitch deck is…