On the other hand, for the recipient, gift certificates provide an opportunity to treat themselves without worrying about overspending. They can indulge in a luxurious spa treatment, enjoy a gourmet meal at a fancy restaurant, or purchase that tech gadget they’ve been eyeing for months. With a gift certificate, they can enjoy these experiences guilt-free, […]
Category Archives: Bookkeeping
Gross Domestic Income (GDI) is an economic measure that represents the total income generated within a country’s borders in a specific time period. It is one of the two primary measures used to estimate a country’s gross domestic product (GDP), the other being gross domestic product (GDP) itself. GDI takes into account all forms of […]
The direct labor would be the salaries of the workers who cut the wood, assemble the pieces and then paint the dog house. As we have seen, the total manufacturing cost and cost of goods manufactured are very similar metrics. The other half of the COGM formula accounts for the work total manufacturing cost formula in […]
The cash flow projection is closely linked to your income statement and balance sheet projections. A balance sheet projection provides a snapshot of your company’s future financial position, detailing assets, liabilities, and equity. Startups may find this challenging due to the lack of historical data, but industry benchmarks can serve as a guide. Existing businesses […]
The next day, the market price drops, so the P/B ratio becomes less than one. That means the market valuation is less than the book valuation, so the market might undervalue the stock. The following day, the market price zooms higher and creates a P/B ratio greater than one. That tells us the market valuation […]
A P/E ratio, even one calculated using a forward earnings estimate, doesn’t always tell you whether the P/E is appropriate for the company’s expected growth rate. To address this, investors turn to the price/earnings-to-growth ratio, or PEG. One useful way to check if a stock’s PE ratio is reasonable is to also look at a related metric that […]
Accrued revenue is particularly common in service related businesses, since services can be performed up to several months prior to a customer being invoiced. In order to account for that expense in the month in which it was incurred, you will need to accrue it, and later reverse the journal entry when you receive the […]
The Statement of Functional Expenses provides a detailed breakdown of a nonprofit organization’s financial activities. It includes components such as Program Services, Management and General Expenses, Fundraising Expenses, and Total Expenses. This statement actively provides insight into the effective use of resources to fulfill the organization’s mission. By adhering to these best practices, nonprofits can […]
Bookkeeping solutions include training, consulting, and bill pay service. The firm’s clients include Brown Church Development Group, Icon Creative Bookkeeping Services in Lincoln Group, Karas Dental, Changing Spaces SRS, Cross Financial Group, and Performance Aircraft. Its owner, Clinton Hlavaty, offers bookkeeping, accounting, and consulting services, helping clients grow their businesses. These solutions cover accounts payable […]
To close a revenue account, debit the revenue account for its balance and credit the income summary account with the same amount, consolidating the revenue for the period. This step ensures that the revenue is accurately transferred and the account is reset for the next period. It is also commonly found that an income summary […]