Reconciliation in accounting refers to comparing two sets of financial records or statements to ensure that they agree and are accurate. It involves comparing the balances in the company’s accounting records with the corresponding balances in the bank statement or other financial records. What are the types of reconciliation in accounting There are several types…
Fixed Asset Turnover (FAT) is a financial ratio that measures a company’s efficiency in using its fixed assets to generate revenue. It’s the company’s net sales divided by the value of its fixed assets. The ratio shows as to how much of the revenue is generated for each dollar invested in fixed assets. Fixed asset…
In finance and accounting, “comptroller” and “controller” are often used interchangeably. However, there are subtle differences between the two roles that are worth exploring. This blog post will explore what differentiates comptrollers from controllers and why it matters. First, let’s define what a comptroller and a controller are. Both are high-level financial positions within an…
In finance and accounting, numerous metrics and concepts are essential for businesses to understand to remain financially healthy and profitable. One such concept is net working capital, which refers to the amount of capital a business has available to operate and invest. In this blog, we will explore net working capital, how it is calculated…
If you’re a small business owner, you might have heard of “intangible assets” but may not fully understand what it means. Intangible assets refer to non-physical assets that have value to a business, such as intellectual property (patents, trademarks, copyrights), brand recognition, customer lists, and proprietary software. Unlike tangible assets, which can be seen and…
In accounting, liabilities refer to the obligations a company or individual owes to others. These obligations arise from past transactions or events and require the entity to make a future payment or provide goods or services to settle the obligation. Liabilities are usually listed on the balance sheet as a separate category alongside assets and…
Whether you’re an entrepreneur, or a business owner, understanding how to calculate CapEx is crucial to managing finances and making informed investment decisions. Capital Expenditure refers to the funds a company invests in its fixed assets, such as property, equipment, or machinery. These investments are made to improve the company’s productivity, efficiency, and profitability in…
What is the Difference Between Revenue and Profit? As a business owner or entrepreneur, one’s ultimate goal is to maximize their profits and grow revenue. But despite the importance of these metrics, many people still need help to fully understand the difference between revenue and profit and how they relate to each other. In this blog…
Have you ever found yourself buried under a pile of receipts, invoices, and financial statements, struggling to keep up with your business’s bookkeeping? If so, you’re not alone. Many entrepreneurs and small business owners find bookkeeping to be a time-consuming and overwhelming task. Fortunately, there’s a solution: outsourcing bookkeeping! By delegating this essential task to…
1. What is Accounting Equation? The Accounting Equation is a fundamental principle in accounting that represents the relationship between a company’s assets, liabilities, and Equity. The accounting equation formula is Assets = Liabilities + Equity, which means that the total assets of a company must always equal the sum of its liabilities and Equity. 2….
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