by Tina | Mar 2, 2023 | Bookkeeping
That’s distinct from retained earnings, which are calculated to-date. Retained earnings are an important part of accounting—and not just for linking your income statements with your balance sheets. Retained earnings are a critical part of your accounting cycle that...
by Tina | Dec 29, 2022 | Bookkeeping
It refers to the estimated residual worth of an asset at the end of its useful life. In the realm of capital assets, determining the salvage value holds significant importance. You can calculate this by an estimation method or by using the depreciation method. In...
by Tina | Nov 28, 2022 | Bookkeeping
This has no immediate impact on cash flow, but it does further delay the inflow of cash. Accounts receivable, like notes receivable, impact cash flow by delaying the receipt of cash from customers. When you collect on a note received, both principal and interest...
by Tina | Oct 31, 2022 | Bookkeeping
You’ll be required to maintain a higher minimum amount in the account, and have limited check-writing options. A business savings account is a good place to store money you’re setting aside for taxes and unforeseen emergencies. By addressing these areas proactively,...
by Tina | Jul 13, 2022 | Bookkeeping
The current portion of long‑term obligations is crucial – missing it inflates working capital by understating short‑term obligations. Many companies display PPE gross, then a contra line for accumulated depreciation, to show net book value clearly. The more...
by Tina | Feb 28, 2022 | Bookkeeping
This report differentiates revenues and expenses in order to see how much net income has been generated. That in turn, allows you to analyze how well your startup performed during that time period. This data needs to get organized into something more useful for the...
