Category: Bookkeeping

The second step in the process is recording transactions to a journal. This takes analyzed data from step 1 and organizes it into a comprehensive record xero community of every company transaction. A transaction is a business activity or event that has an effect on financial information presented on financial statements. The information to record… Continue reading The 8 Steps of the Accounting Cycle Explained

Authorized shares are the total number of shares a company can legally issue, while issued shares are the number the company has issued to date. The number of authorized and issued shares may be the same or different, in which case there would be more authorized than issued shares. Investors can use the number of… Continue reading Shares Outstanding Formula + Calculator

A cash flow budget is a more accurate tool to assess the company’s debt commitments. While figures of one or more are considered healthy for quick ratios, they also vary based on sectors. However, it takes into account all current assets and current liabilities, regardless of timeframe or maturation date. What Is the Quick Ratio?… Continue reading Quick Ratio or Acid Test Ratio Formula, Calculation, & Example

Here’s what you need to cover, including accrual calculations, journal entries, and the impact of raises and sabbaticals. Conversely, if an employee takes a sabbatical leave for personal reasons, the employer should accrue a liability. The employer should accrue a liability over years if the policy is to grant extended leave as a sabbatical for… Continue reading Vacation Accruals: How They Work & How to Accurately Calculate PTO

As independent entities, they are generally not entitled to the same benefits as employees, including vacation pay. Contractors negotiate their own terms of service, which https://www.oemsoftwaredownload.org/distribution-software-what-can-it-accomplish-for-you/ may or may not include provisions for time off. Instead of receiving vacation pay, contractors typically factor their need for time off into their overall fee structure. How to… Continue reading PTO Accruals Guide: How to Calculate PTO & Vacation Time