Content Prepare the Final Total for Retained Earnings What Is a Statement of Retained Earnings? What It Includes Stay up to date on the latest accounting tips and training Explanation of Statement of Retained Earnings Statement of Retained Earnings For established companies, issues with retained earnings should send up...

This allows the company to write off an asset’s value over a period of time, notably its useful life. Net book value is the amount at which an organization records an asset in its accounting records. Net book value is calculated as the original cost of an asset, minus...

When you offshore, you are hiring someone else in another country and they become your “employee”. Appointing the right remote accounting firm is one of the most typical decisions populace constructs. However, selecting the correct outsourcing bookkeeping firm to handle your accounting activities is critical. This can help prevent...

Its formula, EBIT divided by interest expense, reveals whether a firm can comfortably service its debt or face potential financial risk. The interest coverage ratio is an important metric that depicts how a company manages its debts. However, if the ratio is low, you must check whether the company...

It has no fee for cash deposits, and up to five outgoing domestic wires are free monthly. You can waive the monthly fee if your 30- or 90-day balance averages $25,000 or more. While we used our own criteria to select the best small business checking accounts for this...

The differences in the balances in the ledger and bank statement require reconciliation to determine the cause of the discrepancy. Companies benefit greatly from an efficient bank reconciliation process. However, this process can be extremely labor-intensive as accountants need to manually analyze data to prepare bank reconciliation reports. After...

Practice makes perfect– there are online calculators or even problems available which can assist you further if needed. It’s also a good idea to write lists of things that you need to know and practice. When choosing your timing for opportunity cost calculations, it’s important to consider how long...

This category of ratios measures a company’s ability to generate profits from its overall revenue figures by considering expenses or equity. Debt ratios measure a company’s long-term ability to pay off its debt obligations. For example, the inventory turnover ratio is an important accounting ratio in the retail industry...

This would include business metrics and KPI reporting, financial reporting, company’s financial health and budgeting of the company’s resources. Data literacy refers to the ability to understand and communicate using data. To evaluate the level of literacy of your employees, you can carry out surveys to categorize them depending...