Category: Bookkeeping

Ignite Spot Accounting delivers heftier reports than many other cloud accounting providers we checked out for this piece. Along with typical financial reporting (like profit and loss reports and balance sheets), you’ll get a KPI (key performance indicator) report and profitability analysis, among others. However, Ignite Spot doesn’t list its virtual accounting prices upfront. Receive…

If you’re just starting out and limited on funds, you might consider a sole proprietorship. However, PROCEED WITH CAUTION and consult with an attorney before you begin your business. Preparing a business plan is essential for everyone should do before they start a business. If you want to sell yourself to potential clients, you should…

While his real estate business runs on autopilot, he writes articles to help other investors grow and manage their real estate portfolios. Each time a transaction occurs, the income or expense is recorded under the appropriate category and account. A good real estate accounting system also allows details for each transaction to be entered, so…

It is also possible to use a general search site like Google, by qualifying the search with “R” or the name of an R package (or both). It can be particularly helpful to paste an error message into a search engine to find out whether others have solved a problem that you encountered. R has…

Retained Earnings are the portion of a business’s profits that are not given out as dividends to shareholders but instead reserved for reinvestment back into the business. These funds are normally used for working capital and fixed asset purchases or allotted for paying of debt obligations. The screenshot below is the income statement of Apple…

Net income is the first component of a retained earnings calculation on a periodic reporting basis. Net income is often called the bottom line since it sits at the bottom of the income statement and provides detail on a company’s earnings after all expenses have been paid. Any net income not paid to shareholders at Best…

This allows for an overarching view of how the finances will look for that period of time. It is the combination of the various departmental budgets and projections that allow for management to make plans for the upcoming year. Once the master budget is prepared, it guides the company’s financial operations throughout the year. Managers…

Flexible budgets are useful to have when sales exceed (or underperform) expectations. The selling and administrative expense budget deal with non-manufacturing costs such as freight or supplies. The council also approved a budget amendment for phase one of the Morris Frank Park Master Plan. City Manager Kevin Gee said in the meeting they plan on…

This includes projecting sales numbers, market penetration, customer demographics, manufacturing costs, customer returns, and seasonality. Economic profit (and any other calculation above that considers opportunity cost) is strictly an internal value used for strategic decision-making. There are no regulatory bodies that govern public reporting of economic profit or opportunity cost. Whereas accounting profit is heavily…

Additionally, if you were to compare the income you’ve lost from something like choosing to take time off work to earn your Bachelor’s degree, it can be difficult to factor all of the trade-offs accurately. As suggested by the concept of risk, there are important limitations to opportunity cost figures. Truly, there will never be…