Category: Bookkeeping

Some of these elements are done more regularly than others to ensure that the books are always up to date. Other elements are completed at certain time periods as necessary to complete a business task. Hiring a bookkeeper frees up your time to focus on business, minimizes the chances of making critical errors, alleviates tax…

A company then needs to produce more of its products to meet this new demand which, in turn, raises the break-even point in order to cover the extra expenses. Break-even analysis is often a component of sensitivity analysis and scenario analysis performed in financial modeling. Using Goal Seek in Excel, an analyst can backsolve how many…

This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales. Flexible budgets are prepared at each analysis period (usually monthly), rather than in advance, since the idea is to compare the operating income to the expenses deemed appropriate at the actual production level. A flexible budget is…

The external parties’ stake in the assets of the business (i.e. liabilities) has increased by $200 to $5,200 as a result of this telephone bill that is owing. Accounts payable are found on a firm’s free xero course balance sheet, and since they represent funds owed to others they are booked as a current liability.…

Indirect expenses—for instance, utilities, bank fees, and rent—aren’t included in COGS. Conversely, you will increase your liabilities if you have a debt with your supplier. This website is using a security service to protect itself from online attacks. Provides a snapshot of the company’s financial position at a specific point in time. A profit and…