Category: Bookkeeping

The absence of a “predictable paycheck” is scary, but the rewards of owning your own business far outweigh those risks. A fractional CFO can help your business on a short-term or part-time basis. Many startups use fractional CFOs until they have the budget to hire someone full-time. But experienced businesses may benefit from this expertise…

A banking API is software that facilitates a digital connection between a company and a bank. If scope is more complicated, many organizations may look treasury and cash management to increase efficiency by creating an in-house bank. Securities and Exchange Commission (SEC) that publicly traded companies must file annually. Why Use a TMS for Payments…

It plays a critical role in financial analysis, as it provides important information about a company’s financial health and its ability to meet its financial obligations. If you look at the balance sheet, you can see that the total owner’s equity is $95,000. That includes the $20,000 Rodney initially invested in the business, the $75,000…

This direct labor cost formula helps companies process payroll, project operational budgets, and calculate the cost of new employees. Direct labor refers to work performed by employees who are directly involved in producing goods or providing services. Its costs include the salaries and wages paid to workers whose efforts are directly linked to specific products…

Remember, you shouldn’t use the FAT ratio on its own but rather as one part of a larger analysis. Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs. Boost your confidence and master accounting…

The days sales outstanding (DSO) measures the number of days on average it takes for a company to collect cash from customers that paid on credit. When you have a system to manage your working capital, you can stay ahead of issues like these. Calculating your business’s accounts receivable turnover ratio is one of the…