The definition of equity is a stakeholders’ stake in the company, which is located on the balance sheet, not the income statement like the service revenue. The company has a total revenue of $125,000, comprised of $120,000 in service revenue and $5,000 in non-operating revenue. After accounting for all the expenses, the net income amounts Read more about Unearned Revenue: What It Is, How It Is Recorded and Reported[…]

CAs may also keep proper financial records and help with continuous reporting responsibilities to investors. Start up CAs are able to make financial statements like earnings statement (profit & loss statement), balance sheet & cash flow statement. These statements represent your startup’s financial performance, position, and cash flow. They assist you to determine your business’s Read more about Startup Bookkeeping Services Life Science and Tech Startups[…]

This allows the company to continue functioning without becoming mired in cash flow woes and maintain its routine. Valuation analysis involves determining your company’s intrinsic value based on its financial performance and other relevant factors. Your P/E is calculated by dividing your current market price per share by your company’s EPS. A P/E ratio between 10 Read more about What is Financial Analysis? Types & Examples[…]

This approach will also maintain the prominence of the duties test by ensuring that the salary level alone does not disqualify from exemption a substantial number of employees who meet the duties test. The regular rate includes all remuneration for wage earners are eligible for overtime after 40 hours per week worked employment except certain Read more about What Full-Time Workers Need to Know About Overtime Rules[…]

Control accounts are essentially summary accounts in the general ledger. They contain totals instead of amounts relating to individual debtors or creditors. They allow one to see the totals, without getting into too much details from individual accounts. This software ensures the general ledger will sort all transactions through the proper accounts to create accurate financial Read more about What is a Ledger in Accounting? Is There a Difference with a Journal and a Ledger?[…]

First, it ignores the time value of money, which is a critical component of capital budgeting. For example, three projects can have the same payback period with varying break-even points due to the varying flows of cash each project generates. Whilst the time value of money can be rectified by applying a weighted average cost Read more about How to calculate the payback period[…]

When a company loses money or pays dividends, it also loses its retained earnings. This is the company’s reserve money that management can reinvest into the business. Retained earnings refer to a company’s net earnings after they pay dividends. Retained Earnings Formula and Calculation Since price-to-earnings (P/E) ratios cannot be used to value unprofitable companies, alternative Read more about Retention Ratio: Definition, Formula, Limitations, and Example[…]

For example, in the case of a mortgage, your home will always serve as the collateral. There are a wide variety of secured loans on the market that you may run into. While this sounds scary, there are advantages to secured loans, as well. In this article, we at the MarketWatch Guides team will go Read more about Secured vs Unsecured Loan: Whats the Difference?[…]

The primary purpose of nonprofit budgeting is to ensure that the organization can meet its goals without running out of money. It involves tracking where your funds are going and identifying areas where you may need to cut back or raise more money. A capital budget focuses on long-term investments rather than day-to-day operations. It Read more about Nonprofit Budget Categories Master the Essentials[…]

With Malone’s payroll management service, you have the ability to turnover payroll for as little or as many employees as you want rather than outsourcing payroll for your entire workforce. TriNet is tailored toward small to mid-sized businesses, offering a streamlined and user-friendly platform for payroll, benefits and HR management. The right payroll software or Read more about Payroll Software Online Payroll Services[…]