Archivos de Categoría: Bookkeeping

Restaurant Payroll: The Ultimate Guide For Business Owners

Most restaurant staff are paid hourly, which means that business owners have the ability to make fine-grained adjustments to employee schedules. In the ideal case, the number of staff on hand should exactly match customer demand. Tracking your sales and labor data in real-time allows you to make accurate determinations of whether your staff is […]

Important Differences between U S. and International Accounting Standards

Investigations also discovered over a $1 billion worth of errors in accounting transactions. The New York Attorney General’s investigation led to a $1.6 billion fine for AIG and criminal charges for some of its executives.[120] CEO Maurice R. «Hank» Greenberg was forced to step down and fought fraud charges until 2017, when the 91-year-old […]

Operating cash flow ratio Definition and Meaning

We doubt, however, that companies’ managements would voluntarily accept a refocusing toward prospective operating cash flows. It is unlikely that they would view forecasting of cash flows any more favorably. The results of the discriminant analysis, appearing in Exhibit II, show a significant improvement over the best-performing operating cash flow ratio, the one incorporating current […]

Debit: Definition and Relationship to Credit

Not all companies choose to send debit notes to buyers with outstanding or pending debt obligations. A seller generally either considers it a standard business practice and uses it according to internal procedures or does not use it at all. In some cases, a buyer can request a document with the information contained in a […]

Cash Flow Challenges? Here’s How to Ensure Seamless Cashflow

Having bad bookkeeping (or none at all) can seriously impact your business. You won’t be able to track payments, deposits, or any financial activities accurately. It will also prevent you from getting financing or even paying taxes correctly. High overhead expenses are particularly challenging because they are persistent. These expenses affect your cash flow every […]

Allowance Method For Uncollectibles

As a result, the estimated allowance for doubtful accounts for the high-risk group is $25,000 ($500,000 x 5%), while it’s $15,000 ($1,500,000 x 1%) for the low-risk group. Thus, the total allowance for doubtful accounts is $40,000 ($25,000 + $15,000). For example, our jewelry store assumes 25% of invoices that are 90 days past due […]