Undoubtedly, the main indicator of the effectiveness of any business is its income and profitability. However, there is one more accounting indicator that can be used to judge the company’s success – this is cash flow. Looking at it, you can..
Definition The definition of outstanding checks is checks written by us and sent to the payee. If the payee has not deposited the check, it will not be reflected in our bank account and stay outstanding. It is considered to be..
Definition The matching principle is an international accounting principle, which means that all the revenues should be attributed to the period of sale, delivery of goods and provision of services and that only those expenses are recorded in the reporting period..
The chart of accounts is one of those bookkeeping basics that you should know before you can start learning more advanced material. Without knowing this concept, it will be practically impossible to maintain proper bookkeeping records, especially for a larger company...
Definition Businesses where process costing is used, as opposed to job costing, usually have various production stages. At each production stage, resources, such as labor, additional material, and utilities, are added. Each stage includes a large amount of costs and at..
In the process of analysis and planning, the management usually wants to calculate indicators that characterize the efficiency of an enterprise. These indicators are crucial for being able to steer the business in the right direction and towards success. In today’s..
Reports and other accounting information are produced so management, investors, creditors, government, or other stakeholders can take actions based on this accounting information. If you consider every organization type, every organization location, how can we all speak the same language and..
There are many bookkeepers and accounting firms today that provide bookkeeping services. The competition is fierce and clients have options to choose from. How can a bookkeeper present oneself self in order to stand out from the competition? How to be..
There has been a recent trend of people viewing new technologies and software as a threat to the bookkeeping profession. Can we say that this is a dying profession without much future? Transformation of the bookkeeping profession The level of automation..