Accounting Guides & Articles
Browse 48 articles on accounting for small businesses.
What is double-entry bookkeeping? A Detailed Review
Double-entry bookkeeping is one of the methods of bookkeeping, and is considered a common way of doing bookkeeping, and is required in....
What is Direct Labor Cost? How to Calculate It?
Direct labor cost is an expense that cannot be ignored in Human Resources (HR) management and corporate finance. It includes all expenses...
What is Cash Flow? A Detailed Review
Cash flow is a key indicator of a company's financial health. Understanding and effectively managing cash flow not only helps maintain...
What Is an Inventory System? Benefits, and Key Functions
An inventory system is a process and tool used by a company to manage and track all of its physical goods or assets. This system helps...
Types of Expense Reports
Learn about Types of Expense Reports, their purpose, common categories, examples, and how businesses manage expense claims efficiently.
What Is an Accounting Audit? A Complete Guide
An accounting audit is conducted to check whether financial statements prepared by organizations such as companies, public interest groups...
What Is a Trial Balance? Everything You Need to Know
What Is a Trial Balance? This beginner-friendly guide explains its role in verifying debit and credit accuracy....
What are liabilities in accounting? A Complete Guide
What are liabilities in accounting? This complete guide covers current and long-term liabilities with simple examples.....
What is a General Ledger? Simply Explained
The general ledger is crucial to a company's accounting system. It organizes and records economic activities in a structured way.....
What Is a Business Claim? A Simple Guide
A business claim is an amount owed to a company as payment for a service provided to a customer. It is an amount that the company is entitled
What Is a Cash Flow Gap? 4 Smart Tips to Fix It Fast
A cash flow gap refers to the difference between a company's cash inflows (uncollected revenue) and cash outflows (expenses incurred)...
What Causes Dividends Per Share to Decrease?
Dividends per share (DPS) is the total amount of money a company pays to its shareholders as dividends during a fiscal year, divided by...
What are the different types of accounting?
Discover the different types of accounting and how they help organizations track finances, analyze performance, and ensure compliance.
What Is Liquidity? Your Simple Guide to the Quick Ratio
What Is Liquidity? This simple guide explains its meaning, why it’s crucial in finance, and how investors evaluate liquidity....
What is Debt Ratio: How to Calculate it?
The debt ratio is a comparison used to measure the extent to which a company relies on debt financing to fund its assets.
Understanding Debit and Credit in Accounting: Key Differences
Debit and credit are fundamental to accounting systems used by companies. This system is based on double-entry bookkeeping.....
Understanding Budget, Functions, and How to Create It for Business
A budget is an estimate of expenses during a certain period in the future. You need to compile it in detail so that the estimate is right on..
Step-by-Step Guide to Account Payable Aging Report for Businesses
An Account Payable Aging Report is a financial document that summarizes the details of a business's debt obligations to suppliers, sorted....
Sales indicators: what are they for?
Sales indicators are commercial indicators that are widely used by retailers. These tools allow for a true analysis of data in the sales...
Return on Sales: Everything you need to know
Return on sales is an important key performance indicator for companies. It evaluates how economically a company operates. If you know how to
Accounting Liabilities: Essential Guide for Companies
Accounting liabilities are obligations a company owes to external parties, such as suppliers, lenders, or employees, and they play a crucial
Indirect Labor Cost: How to Calculate It
Indirect labor cost is crucial for a company's success. Companies must understand the importance of indirect labor because it helps....
How to use credit ratio analysis
Ratio analysis is the simplest tool for fundamental analysis. When constructing a corporate bond portfolio, it is worth starting the....
How to Streamline Your Invoicing Process? A Simple Guide
Simplify your invoicing process with smart strategies and tools. Learn how to create accurate invoices, get paid faster, and keep your....
How to Make an Accounting Report: A Simple Guide
An accounting report is a document that summarizes the income and expenditures of an organization or community for a certain period of time.
Stop Accounting Mistakes in Their Tracks: 8 Tips
Avoid costly accounting mistakes before they happen! Discover 8 practical tips to prevent mistakes, improve accuracy, and keep your business.
6 Steps to Close Your Accounting Year
Discover how to close your accounting year correctly. Stay compliant, organized, and ready for the new financial year....
How to Calculate the Break-Even Point?
Did you know that the "break-even point" is an indicator of the soundness of a business and the financial condition of a company?...
How to Calculate Production Costs: Definition, Types, and Examples
Production costs are the value sacrificed for services or goods that are expected to provide current or future benefits to an organization...
How to Calculate Operating Income? A Complete Guide
Operating income is your company's earnings before taxes and interest. Understanding your operating income is crucial for evaluating your...
How do tangible fixed assets work in accounting?
Tangible fixed assets are long-term physical resources like buildings, machinery, and equipment used in business operations.
Fixed costs and variable costs: definitions and examples
Want to optimize your budget? Learn about fixed costs and variable costs to enhance your financial strategies with our comprehensive...
Fixed assets vs. current assets: what are the differences?
Learn the key differences between Fixed assets vs. current assets and how they impact your company’s financial health. Understand their role
Financial Reports: What They Are and How to Use Them
Every company ideally creates and uses financial reports in the process of managing the company's finances. Because, there are various....
Expense Account in Business: A Beginner’s Guide
Efficiently handle your company's finances by understanding how expense account in business work. This guide covers all the basics you...
Consolidated vs. Separate Financial Statements
Consolidated vs. Separate Financial Statements highlight key differences in reporting for parent companies and subsidiaries. Learn when to...
Bad Debt in Business: Causes, Impact & Prevention
Bad debt in business arises when clients fail to pay on time, affecting cash flow and growth. Learn its causes, impacts, and prevention...
Account Based Marketing (ABM): A Guide for B2B
Account Based Marketing (ABM) is gaining popularity as a marketing strategy. Unlike the traditional approach that aims to attract a large...
Accounting Provision: A Simple Guide
An accounting provision is a probable but uncertain liability, recorded under the prudence principle and shown on the balance sheet.
What Is an Expense Report?
An expense report is a document drawn up by an employee who compiles all business expenses incurred during a specified period.
What Is An Accounts Receivable Aging Report?
Account Receivable Aging Report is a periodic report that identifies the company's receivables according to the duration of time
Sample Balance Sheet and Income Statement for Small Business
Sample Balance Sheet and Income Statement for Small Business: A balance sheet provides a detailed view of your company’s assets....
How to Calculate Depreciation?
To calculate depreciation, subtract the asset’s residual or salvage value from the purchase costs then divide the remaining amount by the....
What are net sales? How to calculate them
Net sales are what remains after deducting all returns, discounts, and rebates from gross sales. The figure appears in a company's.....
How to Calculate Manufacturing Overhead Costs?
To calculate manufacturing overhead costs, divide your overhead costs by your labor costs to see how efficiently you use your resources. The total manufacturing overhead of $60,000 divided by 10,000 units produced is $6.
How Much Money Can You Deposit Before it is Reported?
Wondering how much money you can deposit before it's reported? Anyone wishing to deposit cash must know that banks automatically report...
How Retained Earnings Are Calculated?
How Retained Earnings Are Calculated? The retained earnings are calculated by adding net profit to or subtracting net losses from the last...
What Is Cost of Goods Sold (COGS) and How to Calculate It?
The cost of goods sold is calculated by adding purchases for the time to the starting inventory and minus the ending inventory for the period