Knowing the right questions to ask an accountant can put you at an advantage, whether you are an owner of a business or planning to start a new business. Read more to find out how? It is important to be well-informed and well-prepared about the market and to have questions to ask an accountant. A…
Before the advent of accounting software, all the financial statements and accounting tasks were managed manually. The process was called the accounting cycle. The most vital component of an accounting cycle is a trial balance. It is the document that has all of the financial information of a business compiled in one place. All the…
A CPA (Certified Public Accountant) is considered one of the most vital professionals to business owners. Besides helping in financial jobs, a CPA also helps file and maintain tax returns. They have an insight into business strategies and can help businessmen plan and set their financial goals for the future. Like everything else, CPA services…
Double declining balance depreciation – an easy way to save money with regard to your business expenses. The double declining balance method helps your asset’s value depreciate less and less over time. This means the biggest taxes are written off after you have purchased a business asset such as equipment, vehicle, tool, or real estate. Does this…
Depreciation is a process that defines the gradual decrease of the cost of a fixed asset over a period of time while it is in use. Depreciation plays a vital role in the accounting process of the business as it allows the company to recognize the devaluation of the asset over time. This helps in…
Journals are known as the backbone of accounting. They are the records of the financial operations of the business. These entries can be recorded manually or by using accounting software. Subsidiary ledgers are used if the entries are recorded manually, and if they are registered with the help of accounting software, they go straight into…
Pro forma is a Latin term which means “for form.” In short, the pro forma financial statements are the “what-if” statement generators. They allow you to explore different hypothetical situations and their impact on your business. According to Harvard Business School, pro forma financial statements are “financial statements forecasted for future periods. They may also…
Running a business is an overwhelming job! If the money is limited it becomes more difficult. Cash flow problems can convert into a big fiasco if not dealt with timely. If the problems prevail this may lead a small business to have trouble with clients, supplies, and products. If the problems are prevalent, a smart…
“Accounting is a tool to get to what clients really need: advice on all affairs directly and indirectly related to financials.” – Marc Rosenberg This quote sums up accounting advisory services. If someone asks what is advisory in the accounting field? The answer is simple, it’s the guidance that you provide to your clients to…
It is very crucial to measure the financial performance of your business especially when you have to manage your expenses and scale the profitability as well. To monitor the success rate of the business there are so many different measures of profitability available that it becomes overwhelming for the business owner to select one. All…
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