All Accounting Articles - Page 3

Accounts Payable Turnover Ratio: Definition, Formula & Free Template

By Crystalynn Shelton on July 25, 2019 | Accounting, Business Accounting, What is | Comments (0)

The accounts payable (A/P) turnover ratio measures how fast a business pays its suppliers. The ratio is calculated by dividing total supplier purchases by the average accounts payable balance for the period. It can be used to identify payment issues, and it gives creditors a sense of your payment history with vendors. If you use…

Journal Entries: What They Are & How to Do Them

By Crystalynn Shelton on July 15, 2019 | Accounting, Business Accounting, Ultimate Guide | Comments (0)

A journal entry is a record of a financial event that has occurred in your business. By recording journal entries, you ensure that your financial statements are accurate and complete. We cover basic accounting, two types of journal entries, and three simple steps to prepare journal entries manually or using an accounting software. What Is…

What Is Depreciation & How Does Depreciation Work?

By Kathleen Murray on July 11, 2019 | Accounting, Business Accounting, What is | Comments (1)

Depreciation is an income tax deduction that allows you to recover the cost of assets like cars, furniture, and equipment that you purchase and use in your business. It can also be reported for accounting purposes so that your financial statements accurately reflect your investment in fixed assets and allocate those costs over time. How…

Controller vs CFO: Differences & Which Is Right for Your Business

By Crystalynn Shelton on July 11, 2019 | Accounting, Business Accounting, Versus | Comments (0)

A controller oversees the accounting department to ensure financial statements are accurate. The CFO takes these financial statements and formulates a strategy to meet business goals. A controller has a solid understanding of accounting principles, whereas a CFO can also analyze current performance to predict future outcomes of the business. Businesses typically hire a controller…

GoDaddy Bookkeeping vs FreshBooks: Prices & Features in 2019

By Crystalynn Shelton on July 9, 2019 | Accounting, Accounting Software, Versus | Comments (0)

We compared GoDaddy Bookkeeping vs FreshBooks on cost, features, customer support, and user reviews. GoDaddy Bookkeeping is ideal for ecommerce businesses, and FreshBooks is ideal for freelancers. GoDaddy Bookkeeping fits any budget with a starting price of $4.99 vs $14.99 for FreshBooks. However, FreshBooks offers more features for the additional cost. When to Use FreshBooks…

Units of Production Depreciation: How to Calculate & Formula

By Kathleen Murray on July 2, 2019 | Accounting, Business Accounting, How To | Comments (2)

Units of production depreciation is a depreciation method that allows businesses to determine the value of an asset based upon usage. Common in manufacturing, it’s calculated by dividing the equipment’s net cost by its expected lifetime production. Multiplying this rate by the asset’s output for the year gives you the depreciation expense. You cannot use…

Bookkeeper vs Accountant: Differences & Which Is Right for You

By Crystalynn Shelton on July 1, 2019 | Accounting, Business Accounting, Versus | Comments (0)

Eventually, most small businesses will need to hire a bookkeeper and accountant. If you are struggling to keep up with daily transactions like invoicing customers and paying bills, you need to hire a bookkeeper. If you’ve got daily tasks under control but need someone who can interpret financial statements, it’s time to hire an accountant….

What Bookkeeping & Accounting Services Should Your Firm Offer?

By Crystalynn Shelton on June 27, 2019 | Accounting, Accounting Careers, Ultimate Guide | Comments (0)

Deciding which accounting and bookkeeping services to offer depends on your knowledge, experience, and ability to take on additional work. Accounting services are typically offered by CPAs, while payroll, tax preparation, and bookkeeping services may not require this level of certification. It’s also important to make sure you have sufficient resources to handle the workload….