Category Archives for Bookkeeping

Accounting vs Bookkeeping: Which Path Is Right For You?

When interviewing for a CPA, look for an accountant who understands tax law and accounting software and has good communication skills. They should understand your industry and A 2023 Guide to Tax Returns for Seed…

Double Entry Overview, History, How It Works, Example

While you can certainly create a chart of accounts manually, accounting software applications typically do this for you. Once you have your chart of accounts in place, you can start using double-entry accounting. It’s possible…

What is a contra asset account?

In bookkeeping, a contra asset account is an asset account in which the natural balance of the account will either be a zero or a credit (negative) balance. The account offsets the balance in the…

Return on Invested Capital ROIC Formula + Calculator

It provides a lot more value for investors in capital-intensive businesses such as brick-and-mortar retailers, telecommunications, and energy companies. Businesses with low capital intensity like software companies won’t put too much focus on ROIC. It…

Stock Split: Definition, How They Work, Impact on Price

To see all exchange delays and terms of use please see Barchart’s disclaimer. Our partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make…

The Total Manufacturing Costs Formula

Since Rose and Lily are not part of the candle-making process, their gross pay is excluded from the direct labor calculation. As a small manufacturing business owner, you probably spend a lot of time thinking…

How to Calculate Your Debt-to-Asset Ratio for 2023

Correctly formulating your company’s debt to asset ratio and unpacking the results to make financial decisions in the future could be the difference between prospering or not. Understanding the debt to asset ratio is a…

Asset Turnover Ratio Definition

A low turnover ratio typically implies that the company should reassess its credit policies to ensure the timely collection of its receivables. However, if a company with a low ratio improves its collection process, it…