Bookkeeping

The interest rates of savings accounts and Certificate of Deposits (CD) tend to compound annually. Mortgage loans, home equity loans, and credit card accounts usually compound monthly. Also, an interest rate compounded more frequently tends to appear lower. For this reason, lenders often like to present interest rates compounded monthly instead of annually. For example,…

However, one limitation of the payback period is its disregard for the time value of money, which refers to the declining worth of money over time. The concept of the time value of money highlights that the present value of money is higher than its future value. When evaluating the payback period or determining the…

My Accounting Course  is a world-class educational resource developed by experts to simplify accounting, finance, & investment analysis topics, so students and professionals can learn and propel their careers. Since IRR does not take risk into account, it should be looked at in conjunction with the payback period to determine which project is most attractive.…

The entity has also been unsuccessful in applying to other financial institutions for re-financing. It is highly unlikely that the entity will be successful in renewing or re-financing the $10m borrowings and, in such an event, the directors will have no alternative but to cease to trade. The bank have already indicated that they are…

Until then, your balance as per the cash book would differ from the balance as per the passbook. The purpose behind preparing the bank reconciliation statement is to reconcile the difference between the balance as per the cash book and the balance as per the passbook. Typically, the difference between the cash book and passbook…

It requires an initial investment of $10,000 and offers a future cash flow of $14,000 in a year. We’ll calculate the NPV using a simplified version of the formula shown previously. Present value (PV) is the current value of a future sum of money or stream of cash flow given a specified rate of return.…

But you could also increase sales by $200,000 without increasing variable expenses. Barton adds that contribution margin can support you in determining the lowest possible price at which sales can be made while still breaking even. This informs decisions on pricing, including possible sales and discounts. For instance, in Year 0, we use the following…

But you could also increase sales by $200,000 without increasing variable expenses. Barton adds that contribution margin can support you in determining the lowest possible price at which sales can be made while still breaking even. This informs decisions on pricing, including possible sales and discounts. For instance, in Year 0, we use the following…

You can easily setup the system to collect invoices from your artists, or have them sign an agreement allowing our application to auto-generate invoices on their behalf. Anytime an invoice is approved, declined, paid, or more info is requested, we notify the payee to ensure you can complete this process as pain-free as possible. With…

Accounting management gets messy as your team and clientele spread across the country or globe. Our clients span the typical “Silicon Valley” style business models and industry focuses, from SaaS to Hardware to Biotech to Crypto … well, you get the picture. As a remote-first company, with offices in several cities like Austin and NYC…