How to Calculate Predetermined Overhead Rate: Formula & Uses
You can do this yourself or work with a reputable construction bookkeeping service like Construction Cost Accounting. The company needs to use predetermined overhead rate to calculate the cost of goods sold and inventory balance. Cost of goods sold equal to the sales quantity multiply by the total cost per unit which include the overhead […]
Times Interest Earned Ratio TIE Formula + Calculator
A high TIE means that a company likely has a lower probability of defaulting on its loans, making it a safer investment opportunity for debt providers. Conversely, a low TIE indicates that a company has a higher chance of defaulting, as it has less money available to standard deduction vs itemized deductions dedicate to debt […]
What is the reorder point formula? Definition, calculations, and benefits
Content What Is the Reorder Point Formula & Reorder Point Calculator Reorder Point Formula The reorder point formula assumes static lead times How to use the reorder point formula in your business Products Unfortunately, in reality, this rarely happens, leading to a number of reordering problems. For many businesses, customer demand and supplier lead times […]
Adjusting Journal Entries in Accrual Accounting Types
Adjusting Entries are the accounting tool used to bring transactions into the correct accounting period. Now that we know the importance of adjusting entries and the steps involved in preparing them – it’s time to take a look at some examples to make it easier to understand. With that in mind, here are some examples […]
Accounting Research Bulletins Wikipedia
Accounting Research Bulletins (ARB) were documents published by the Committee on Accounting Procedure between 1938 to 1959 on various accounting problems. Before using any of the accounting standards resources, it is important to know the acronyms used in reports, bulletins, and interpretations. The SEC remained active, adopting in 1940 Regulation S-X, which governed the form […]
How And Why You Should Create A Sales Invoice
Learn how to improve your sales process and close more deals with this free guide. Also known as an estimate, this type of invoice is given before services are provided and may need to be altered later. Sales invoices serve as essential data for future planning, providing information on incoming revenue and earnings changes over […]
The Beginner’s Guide to Bookkeeping
Bookkeeping is the process of keeping track of a business’s financial transactions. These services include recording what money comes into and flows out of a business, such as payments from customers and payments made to vendors. While bookkeepers used to keep track of this information in physical books, much of the process is now done […]
Sales Discount: Accounting, Journal Entry, Example, Debit or Credit
It is a reduction of gross sales which correspondingly causes a decrease in the net sales figure. As seen in the financial report above, the sales discount as a contra revenue account appears as a $9 reduction from the gross revenue of $900 that the manufacturer reported, which results in net revenue of $891. Let’s […]
How to Start Bookkeeping Business with No Experience from Home
Content Do you need a bookkeeper if you use account software? What are the duties of a bookkeeper? Resources For Getting Started thoughts on “How to Become a Bookkeeper” Bookkeeper Job Description Example Where can I take the bookkeeper certification exam? The classes listed here start off as low as $0 if you enroll in […]
What is the transaction approach and balance sheet approach to measuring net income?
However, the company is owed $90,000 and will still try to collect the entire $90,000 and not just the $85,200. There are a number of high-quality accounting software solutions available. To find out which is the right option for your business, check out our article detailing the best accounting software for small businesses. A balance […]