Danielle Bauter

Shoeboxed is a cloud-based receipt scanning and expense tracking application that lets you scan, upload, and store receipts for digitization and organize expenses into different categories. You can upload business documents yourself or mail them to Shoeboxed and let it do the scanning; its scans are IRS-accepted, and you can use them for tax compliance…

Established in February 2024 as a replacement for the now-discontinued QuickBooks Self-Employed, QuickBooks Solopreneur, which costs $20 monthly, is a user-friendly accounting software designed specifically for one-person businesses. Whether you need assistance with categorizing expenses, generating invoices, estimating taxes, or gaining financial clarity, QuickBooks Solopreneur can be the key to streamlining your finances and achieving…

A blanket purchase order (BPO) is a type of purchasing agreement between a buyer and supplier that establishes terms and conditions for multiple transactions over a specified period—typically a year. It provides flexibility to the buyer to order varying quantities of goods or services within the agreed-upon terms without the need to renegotiate for each…

Amortization allocates the cost of intangible assets or certain prepaid expenses over multiple years, while depreciation allocates the cost of tangible assets with physical substance over their estimated useful life. Essentially, they are similar concepts in that they both involve the gradual allocation of the cost of assets over time. They help businesses reflect the…

The main differences between current assets vs fixed assets are their expected lifespan and how easily they can be converted into cash: Current assets are short-term assets that are expected to be converted into cash or consumed within one year, such as cash, accounts receivable, and inventory; geared toward short-term liquidity and day-to-day operations Fixed…

The fixed asset turnover ratio, also known as the FAT ratio, is a financial metric that measures how efficiently a company uses its fixed assets to generate sales. In other words, it tells you how much revenue a company gets for every dollar invested in fixed assets. However, a high FAT ratio doesn’t necessarily translate…

Net fixed assets—also known as net property, plant, and equipment (net PP&E)—represent the total cost of a company’s long-term tangible assets after accounting for depreciation. These assets are used in the production process, aren’t easily converted into cash, and typically include items such as buildings, machinery, equipment, vehicles, and land. They are important for assessing…

While realized gains and recognized gains may sound similar, they have distinct meanings. The main difference between realized and recognized gain significantly impacts your tax bill: Realized gain is the tangible financial benefit you receive when selling an asset for more than its adjusted basis. It reflects your overall profit regardless of accounting or tax…

Realized and unrealized gains are both important concepts in investing, but they have distinct meanings and implications for accounting and taxes. The key difference between realized gain vs unrealized gain is whether you have sold the asset that has increased in value: Realized gain is the sales price of an asset in excess of the…

The average age of accounts receivable (A/R) is calculated by dividing 365 by the annual A/R turnover ratio. Average Age of Receivables = 365 days A/R Turnover Ratio A lower average age of receivables indicates that a company is collecting its debts more quickly, which is generally considered a positive sign for a company’s financial…

Average age of inventory, also known as days sales in inventory (DSI), refers to the average number of days it takes a business to sell its inventory. It’s a key metric used to assess a company’s inventory management efficiency and working capital health. The average age of inventory formula is: Average Age of Inventory =…

The asset coverage ratio (ACR) is a crucial tool for understanding a company’s financial health, particularly its ability to pay short-term and long-term debt. It is a financial metric used primarily by creditors and lenders to assess the ability of a company to cover its debts by comparing total assets after current liabilities to the…