Bookkeeping

This simple but comprehensive template allows you to create a 12-month cash flow forecast for your small business. The spreadsheet includes monthly columns for recording forecasted and actual cash flow. List cash receipts and cash paid out to view your projected and actual cash position for each month. Track the value of your current inventory and sole proprietorship bookkeeping determine …

In other words, a fixed cost is any expense that remains the same regardless of the company’s sales and volume, such as rent, loan payments, leases, etc. These costs remain constant is salary a fixed cost throughout time and can usually only be changed when renegotiated. The conversion cost takes labor and overhead expenses into account, but not the cost …

Now that you know the benefits of outsourcing software development to India, let’s look into its challenges. In this post, we’ll talk about the pros and cons of SEO, customer service, software outsourcing to India, and more. We’ll also look into how businesses normally take advantage of outsourcing to India. Software Development Outsourcing: India’s Top 11 Contenders A typical outsourcing …

A cash receipts journal is a subsidiary ledger in which cash sales are recorded. This journal is used to offload transaction volume from the general ledger, where it might otherwise clutter up the general ledger. The cash receipts journal is most commonly found in manual accounting systems. The concept is essentially invisible in many accounting software packages. Record your cash …

Due to this, the increase in gross profits may not compare with the net loss you experienced due to that customer drop. It shows how effectively you use your resources—direct labor, raw materials, and other supplies—to produce end products. It helps you decide where you can save money and where you should invest it. “You can flex your gross margin …

A managerial accountant may identify the carrying cost of inventory, which is the amount of expense a company incurs to store unsold items. Accounting skills are important because they help businesses to manage cash flow, meet tax deadlines and set budgets for the year. Essentially, they help to understand the profitability of a company and its financial strengths and weaknesses. …

Fortunately, English also provides us with biennial, a word that specifically refers to something that occurs every two years or that lasts or continues for two years. The main difference between something that happens biannually vs. semiannually is the time between the events during the year. The terms biannual and semiannual are often used interchangeably, but they have distinct meanings. …

Unbilled Revenue is treated as an asset (a receivable) until the customer is able to be billed. Revenue recognition is important for SaaS businesses because the amount of revenue that may be earned in a given period may not relate to the amount billed or cash collected. For SaaS CFOs at early stage SaaS organizations, your choice of tech stack–and …

This service may be helpful in aiding you in considering your startup’s financial options. Their team consists of highly professional and skilled accountants who deliver consistent and top-quality results for your business. This process sees a middle ground between staffing formats and workload leadership. Opting for virtual bookkeeping offers benefits in terms of flexibility and cost-effectiveness for both the enterprise …

In this case the debit entry to the cash account represents the cash collected from customers for the period, which increases the asset of cash. This is a very simplistic example but would show how transactions are recorded. Both the cash amount has to be recorded under the cash credit account and the same amount has to be debited from …