Category: Bookkeeping

It enables you to gain valuable insights into how well or how poorly your assets are performing. You can also optimize your asset portfolio using historical data and actual efficiency, broken down by asset type. Some noncurrent assets, such as land, may theoretically have unlimited useful lives. A noncurrent asset is recorded as an asset…

Keep in mind that adjusting entries do not record any new business transactions. They just adjust the accounts so that expenses are recognized at the time they incur. In accrual accounting, revenues and the corresponding costs should be reported in the same accounting period according to the matching principle. The revenue recognition principle also determines…

If you are interested in proposing a special issue, first decide on a topic or theme, and then select a journal. It’s best to do some preliminary research on any specific guidelines required by the journal you select. Also, check the Guide for Authors of the journal you are considering. Some special issues are commissioned…

Firstly, it provides an accurate picture of the cost of production. This information is critical for manufacturers to determine their pricing strategy, ensuring that they are not selling their products at a loss. By knowing the exact cost of production, manufacturers can also identify areas where they can reduce costs and increase profitability. Substandard materials,…

In summary, petty cash is frequently a sum of money of no more than a few hundred dollars placed within a firm’s premises to settle small transactions. Even though the concept is simple, such funds are vulnerable to misuse and may lack proper governance. Nevertheless, the emergence of petty cash management software solutions provides a…

Retaining earnings help provide the company with funds for future growth and expansion, including investments in new facilities, equipment, or technology. At times, startups might reflect negative retained earnings as they reinvest everything into growth. While it’s a sign of aggressive growth tactics, it can also indicate potential profitability in the future. However, after the…