Category Archives: Bookkeeping

This formula provides a straightforward way to gauge a company’s liquidity and its ability to meet short-term financial obligations. But, during recessions, they flock to companies with high current ratios because they have current assets that can help weather downturns. The current ratio provides the most information when it is used to compare companies of […]

In reality, however, the trade-off between inventory carrying cost and setup cost remains. Once you calculate your break-even point, you can determine how many products you need to manufacture and sell to make your business profitable. Accounts payable is money your business owes to vendors and suppliers for products or services that have already been […]

On the other hand, when an investor does not exercise full control or have significant influence over the investee, they would need to record their investment using the cost method. In this situation, the investment is recorded on the balance sheet at its historical cost. At the end of the year, ABC Company records a […]

For instance, top-performing AP teams process nearly four times the number of invoices than bottom performers, according to American Productivity & Quality Center (APQC) benchmarking data. While cost reduction can be important, it’s rarely the sole motivation for outsourcing AP. In fact, Deloitte reports that COVID challenges have most organizations focused on “standardization and process efficiency” as […]

Accounts payable is one of the most important—and complex—aspects of any business. Managing payments, invoices, and vendor relationships can be time-consuming and difficult to keep track of. You should also pick partners used to working with similarly sized organizations. With less scale, smaller enterprises need more flexibility from outsourcing partners than multinational corporations. Larger outsourcers are […]

This means there is a far greater need for EAs today than in the past. Given the current rising number of examinations, more citizens have found themselves in need of representation. To a large degree, the job of enrollment agents is actually recession proof. Enrolled agents ensure that citizens receive competent representation. Becoming an enrolled […]

86% of Supplemental Security Income (SSI) recipients received payments because of disability or blindness in 2020. A rebound in food inflation and healthy upticks in year-over-year prices for shelter and medical care services have ensured that benefits will move higher in 2021. Although the variance in these monthly payouts is sizable, ages 62 and 70 are […]

The majority of small business owners and start-up founders are on their toes almost every day. Though several activities stake their claim on your time, accounting and bookkeeping form a significant chunk of your workload. Accurate records increase a small business’s chances of success. Records also are critical at tax time, when a business must […]

The relatively high average payment to children (compared with payments made to blind and disabled adults) is due in part to a limited amount of other countable income. The spike in average monthly benefits in 1992 is due to retroactive payments resulting from the Sullivan v. Zebley decision. As of December 2020, blind and disabled children […]

The following accounting checklist lays out a recommended timeline for the accounting functions that will show the state of your business and allow you to streamline your tax preparation. For a thorough understanding of business accounting, continue reading. If you’re looking for a specific answer, use the links below to jump to a section of […]