Bookkeeping

The Times Interest Earned ratio serves as an essential tool in financial analysis, providing crucial insights into a company’s debt servicing capability and overall financial health. Understanding a company’s financial health is crucial for investors, creditors, and management. One important metric that provides insight into a firm’s ability to meet…...

While a relatively straightforward formula, there are a few additional calculations required if the EBIT value is not already known. We shall add sales and other income and deduct everything else except for interest expenses. Take your learning and productivity to the next level with our Premium Templates. As a…...

JOBPOWER is as powerful as Premier in terms of construction management, and it has a pretty decent set of accounting features, like A/P and A/R management. Unfortunately, it took a hit in the pricing, ease of use, and mobile app criteria. Just like Premier Construction Software, Sage 100 Contractor is…...

In order to find the total costs for direct raw materials, you just need to find them on the company’s balance sheet. The same can be said for finding the direct labor cost, which can also be found on the company’s balance sheet. Indirect costs include things such as utilities,…...

Prime costs are direct costs, meaning they include the costs of direct materials and direct labor involved in manufacturing an item. Prime cost plays a crucial role in pricing strategy as it represents the baseline expenses directly tied to production. When businesses calculate their prime cost accurately, they can determine the minimum price…...

It also includes you analyzing, interpreting, and communicating financial information. Accounting involves recording, classifying, reporting, and summarizing financial transactions. The goal of small business accounting is to provide financial information about the business to its stakeholders and regulators and for tax purposes. You can also use this information internally to…...

Additionally, free Wave Accounting users don’t have access to customer service. While you can check out articles on Wave’s knowledge base, you won’t be able to connect with a live person who can talk you through any accounting software problems. Wave’s biggest perk is probably its cost, or its lack…...

By freeing up time that was previously spent on manual labor, businesses are then free to focus on more strategic initiatives to propel their growth. Centime’s accounts receivable (AR) automation software makes it easy to share AR collections data with the board, management and free donation invoice template key stakeholders to…...

When the main corporation issues a comparative balance sheet for the entire group of corporations, the balance sheet heading will state “Consolidated Balance Sheets”. As you can see, the report form is more conducive to reporting an additional column(s) of amounts. The comparative balance sheet presents multiple columns of amounts,…...

It is evident that some of the costs pertaining to this period are attributable to the units which have not been completed. The next step is to convert the physical units in production shown above (10,000) into equivalent units. What this example shows is that although there are 200 physical…...