Articles

Creating a business budget for a company is a tricky task. Some companies avoid the idea of creating business plans, and that’s a big mistake. Check out the article to learn about the importance of budgeting. You will also learn a..

The bank balance is the balance a bank reports on the company’s bank account at the end of the month. And the book balance is the internal general ledger record of that mentioned account. But what is the difference between these..

If you have a company related to manufacturing, or you work as an accountant for such a business, it’s essential to calculate and monitor the predetermined overhead rate. This rate helps monitor expenses to produce goods or provide services while setting..

Operating a business means spending a lot of time calculating employees’ salaries or wages. The task becomes even more complicated if employees work overtime since extra work is paid differently. Calculating overtime depends on different factors, such as the state, industry,..

Both a budget and a forecast are financial tools. Companies use these tools to plan their growth, income, expenses. These tools are vital to companies as they help the management in decision-making. Budgeting and forecasting are similar, and some companies owners..

Net working capital (NWC) and changes in NWC throughout the years play crucial roles for businesses. Positive or negative changes in the net working capital indicate the difference between the NWC of any two periods (months, quarters, current and previous years)...

Many taxpayers have to pay self-employment tax, but what exactly does it mean? Its rate consists of Medicare and Social Security tax rates. Self-employed individuals have to pay this tax in most cases. Typically, independent contractors, freelancers, small business owners, and..

The beauty of progress is that it never stops. Every industry comes up with various optimizations to make its processes better, safer, and modern. In the business industry, one of the most important areas is accounting. In the past, people used..

Many industries work according to billable hours. Even though it’s a common occurrence, there are still issues with keeping track of billable time. It’s a problem since it affects a person’s income. Bill time is rather profitable for most firms, which..