Eric Gerard Ruiz, CPA

The interest coverage ratio (ICR) measures how easily a company can pay interest on its outstanding debt using its operating earnings. It evaluates the relationship between earnings and interest obligations, providing insight into financial solvency and risk management. Businesses, investors, and lenders use this ratio to assess whether a company generates enough profit to meet…

A fixed asset roll forward report is a schedule that reconciles beginning and ending balances of fixed assets and accumulated depreciation over a period by capturing all movements. It presents the opening balances for asset cost, accumulated depreciation, and net book values, followed by period activity, such as acquisitions and retirements. My template below shows…

There are two main components of a bank statement reconciliation. First, ensure that all transactions on your bank statement appear on your check register. Then, see to it that the remaining transactions in your check register are recorded properly, even though they haven’t cleared the bank. I’ll break those two components into five easy steps,…

QuickBooks Online’s (QBO) budgeting tools help transform reactive financial management into strategic planning. These features enable accurate forecasting, early identification of potential shortfalls, and informed decision-making based on projected performance. This step-by-step guide covers the creation, management, and monitoring of budgets in QBO to establish proactive financial control and support sustainable business growth. If you’re…

Accounts receivable (A/R) represents the money your customers owe you for goods or services you’ve already delivered but haven’t been paid for yet. When you complete work for a client or deliver goods and send an invoice for payment later, that outstanding amount becomes part of your accounts receivable. In this guide, I’ll walk you…

It is easy to make a depreciation worksheet in Excel without using complex and conditional formulas. You only need to familiarize yourself with the SLN , DDB, and SYD formulas to compute depreciation. I’ll show you how I built a depreciation worksheet from scratch, from setting up column headers to entering formulas and using each…

To properly manage uncollectible accounts in your bookkeeping, it’s important to understand how to write off bad debt in QuickBooks Online. Step 1: Identify the bad debt. Step 2: Create a bad debt expense account. Step 3: Create a bad debt item. Step 4: Create a credit memo for the bad debt. Step 5: Review…

Making a journal entry in QuickBooks should be rare and done only for specific purposes. Most of QuickBooks Online’s input screens automatically generate the necessary entries in the background. However, if you do need to create one manually, the process of how to make a journal entry in QuickBooks Online is as follows: Step 1: Navigate…

QuickBooks Online Plus and Advanced let you organize and analyze your financial data using classes and locations, which you can enable in account settings. Once active, you can create categories tailored to your business structure and assign them to transactions like invoices, expenses, and bills. This allows you to generate detailed reports, including P&L by…

Manually entering bank transactions into QuickBooks Online isn’t the recommended approach, and for good reason. The platform’s bank feed feature is faster, more accurate, and designed to keep your records in sync. However, there are times when manual entry is unavoidable, like when you’re catching up on past bookkeeping or need to record older transactions…

Financial reporting is the final product of your bookkeeping; it turns your business transactions into a clear snapshot of performance and financial health. Without reports, you’re running your business blind. QuickBooks simplifies financial reporting by automatically generating dozens of built-in reports. But with so many options available, it can feel overwhelming trying to figure out…

QuickBooks Online remains the leading choice for small business accounting software across the US. As technology continues to evolve rapidly, Intuit consistently enhances QuickBooks Online to serve its diverse customer base better. TL;DR for smart business owners: Here’s what you need to know about the newest QuickBooks Online features that can actually make a difference…