On the other hand, a strict credit policy may lower sales, but it can result in lower bad debt expenses and higher net credit sales. It’s essential to calculate accounts receivable turnover to understand how quickly a company can collect on its credit sales. Net...
I called Intuit and the guy I spoke to said I’m doing it wrong. He said that I need to just take all my checks to the bank what does it mean to be hired as a contractor and deposit them – then wait for them to hit my General Fund register in Intuit and...
Company A has an ROE of 40% ($240m ÷ $600m), but Company B has an ROE of 30% ($240m ÷ $800m), with the lower ROE % being due to the 2nd company carrying less debt on its B/S. Therefore, the fact that the company requires fewer funds to produce more output can lead to...
That way, the value reporting form bank has less risk and is more willing to give your business a loan. After speaking to a financial advisor and finding they’re still 60 percent short of their funding goal, John and Kelly look for investment capital. They...
Consult a CPA experienced with startups to determine the best approach. Remember, the cost of not having sound accounting practices far outweighs the cost of implementing them from the start. Investing in robust accounting systems and professional advice early on sets...
An asset’s depreciable amount is its total accumulated depreciation after all depreciation expense has been recorded, which is also the result of historical cost minus salvage value. The carrying value of an asset as it is being depreciated is its historical cost...
