Category: Bookkeeping

For example, an increase in AR indicates that revenue was earned and reported in net income on an accrual basis although cash has not been received. This increase in AR must be subtracted from net income to find the true cash impact of the transactions. Operating cash flow (OCF) is a measure of the amount… Continue reading Cash Flow vs Taxable Income: Whats the Difference? Rosenberg Chesnov

In addition, you’ll have a more accurate way to monitor the growth of your business and areas of opportunity along the way. To benefit from this level of standardization, plan to implement common inventory ratios like inventory turnover, cost of goods sold, and days’ sale average. Analysts use COGS instead of sales in the formula… Continue reading What is inventory change and how is it measured?

This can occur when certain requirements have been met, or else it may be caused by changes made by the mutual fund company. In most cases reclassification is not considered to be a taxable event. A reclass or reclassification, in accounting, is a journal entry transferring an amount from one general ledger account to another.… Continue reading Reclast: Uses, Dosage & Side Effects

For better or worse, predicting payroll is essential in good times and bad. Payroll Expenses are considered to be one of the most significant operating expenses on the financial statements of any organization. Since they comprise a major operating expense, they need to be audited properly. We believe everyone should be able to make financial… Continue reading What are Payroll Expenses? with pictures

Read on to find out how to properly fill out a checking deposit slip. Understanding how to fill out a deposit slip is a fundamental skill that empowers individuals to navigate the banking system confidently. A routing number is made up of nine digits that identify your bank to other banks. It will typically be… Continue reading How to Fill Out a Checking Deposit Slip: 12 Steps with Pictures