Investors can deposit funds into alternative investments that generate interest in many ways. The best way to earn interest is to research the risk profile of your borrower; should they default on the loan, you may not have recourse to recover your lost principal. Two main types of interest can be applied to loans—simple and […]
It shows a business has consistently generated profits and retained a good portion of those earnings. It also indicates that a company has more funds to reinvest back into the future growth of the business. Yes, having high retained earnings is considered a positive sign for a company’s financial performance. A retained earnings deficit occurs […]
Any business based in a country following the IFRS (such as Australia, New Zealand, the UK, Canada, Russia, and India) will not have access to LIFO as an option. Organising your inventory and calculating the cost of your goods is a fundamental part of running an efficient business. Get this right and you’ll make life […]
For example, you must generally report wages you pay during the 1st quarter—which is January through March—by April 30. If you made timely deposits in full payment of your taxes for the quarter, you may file by the 10th day of the 2nd month that follows the end of the quarter. For example, you may […]
For instance, a high cost of sales may lead to a lower net profit margin, suggesting a company may not be as profitable as others in its industry, even if it is generating significant revenue. Cost of Sales is a critical figure for investors and financial analysts to consider when evaluating a company’s financial health. […]
They also provide a means of transferring ownership and offer liquidity to existing shareholders. Common stocks are prone to price volatility, and their value can fluctuate significantly in the short term. Additionally, the valuation of common stocks also undergoes changes, making it difficult to filing a joint tax return when married andliving apart evaluate their […]
In its most basic form, the accounting equation shows what a company owns, what a company owes, and what stake the owners have in the business. These are the resources that the company has to use in the future like cash, accounts receivable, equipment, and land. A company’s quarterly and annual reports are basically derived […]
Your CPA firm will have its own audit checklist of things they need to accomplish now to complete your audit correctly and on time. Holding back information or not being responsive may delay your audit or cost you more money. If an audit is required by law, or if a third party has strict requirements […]
QuickBooks Online offers four pricing plans that start at $35/month and cost up to $235/month, depending on the number of features and users your business needs. QuickBooks Enterprise is the most customizable and powerful version of all the QuickBooks products, making it ideal for larger businesses with complex finances. It builds on Premier Plus with […]
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses […]