While installing your new accounting software you have most likely been asked whether you would like to use one of the default charts of accounts included with the program or develop your own. Unless you are very familiar with setting up a set of financial books you will want to choose from one of [...]
Archive of posts filed under the Financial Statements category.
The Burden of Payroll
And I am not talking about the actual time and cost of getting your employees paid, but all those costs often not considered when providing a customer an estimate or proposal or not included in budgets and financial planning.
The cost burden of payroll includes all expenses incurred over and above an employee’s wage. To [...]
Inventory Costing
There are several ways to determine the value of your inventory and each type of valuation has benefits. The most common type used by small businesses is average cost or weighted average costing. This is based on the average cost of identical units. Using the total actual cost of all similar [...]
Determining the Cost of an Asset
I am often asked by business owners why the market value of an asset is not listed on their balance sheet. This is because in the bookkeeping and accounting professions we are traditionally reluctant to accept market value as the basis of asset measurement. Although assets such as cash or accounts
receivable are usually measured by [...]
Internal Audits of Financial Statements
With todays technology once the bills are entered, the checks printed, the invoices posted and cash receipts are recorded, computer programs print out financial statements with a click of the mouse. However, you can bring much more to your company than data entry. A careful review of the books and analysis of key accounts will [...]
