Category: Bookkeeping

In this podcast episode, we discuss the accounting for vineyards and wineries. “Economic downturns in certain industries, and changes in patterns of work, may have affected the use and valuation of commercial real estate,” the report said. “Combined with higher interest rates, this has generated concerns among financial institutions and other companies in many industries […]

Understand the difference between direct and indirect expenses to avoid these issues. Companies can determine how much they have spent paying for indirect charges by calculating the indirect cost rate. Expenses related to the general operation of the construction company, including office rent, utilities (electricity, water, heating/cooling) and office supplies. Are fixed price contracts included […]

By analyzing past projects, construction firms can identify trends in cost overruns or savings, which can then be factored into new estimates and bids. This data-driven approach to estimating helps in creating more competitive and realistic project proposals. Scheduling and timekeeping is a vital part of business, but too often, it’s not done efficiently. Technology […]

The debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. It is a measure of the degree to which a company is financing its operations with debt rather than its own resources. Debt typically has a lower cost of capital […]

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. Q. Can I use the debt to equity ratio for personal finance analysis? Despite being a good measure of a company’s financial health, debt to equity ratio has some limitations that […]

As a result, the state treasurer anticipates a decrease of $99 million in revenue from the state’s principal business taxes. This prompts state officials to cut the current and upcoming fiscal year revenue projections by a significant amount and, unless they can cut expenditures as well, they will be operating at a net loss. The […]

Invoicing, statement management, and other accounting responsibilities can quickly turn into a time-consuming business function. Running a business means you have to find the right balance of time and money you’re putting into each department. Completing paperwork, filing, data entry, and other duties can slow operations https://www.bookstime.com/ and productivity and take away from more important […]

Using this method, the asset depreciates at a greater rate in its early years. A company may record a straight-line depreciation of $100 in its financial statements versus an accelerated depreciation of $200 in its tax books. In turn, the deferred tax liability would equal $100 multiplied by the tax rate of the company. The company […]

By submitting this form, you consent to receive email from Wall Street Prep and agree to our terms of use and privacy policy. Average Collection Period Formula, How It Works, Example This metric determines short-term liquidity, which is how able your business is to pay its liabilities. The first step in calculating your average collection […]

By submitting this form, you consent to receive email from Wall Street Prep and agree to our terms of use and privacy policy. Average Collection Period Formula, How It Works, Example This metric determines short-term liquidity, which is how able your business is to pay its liabilities. The first step in calculating your average collection […]