Category: Bookkeeping

It would involve calculating a known cost (like Labor cost) and then applying an overhead rate (which was predetermined) to this to project an unknown cost (which is the overhead amount). The formula for calculating Predetermined Overhead Rate is represented as follows. In these situations,…

This guide will help you understand the essential steps in bookkeeping, from organizing your finances to knowing when to seek professional help. By following these steps, you can take control of your financial situation and make informed decisions for your business. While Xero doesn’t limit…

Loyalty fosters an environment where both partners can thrive individually and together. When partners feel secure in their loyalty, they are more likely to take risks and pursue personal growth. This support is crucial for developing new skills and achieving personal goals. What are some…

Companies online bookkeeping with low quick ratios may struggle in industries with slow inventory turnover. Solvency and liquidity are equally important, and healthy companies are both solvent and possess adequate liquidity. A number of liquidity ratios and solvency ratios are used to measure a company’s financial health,…

Depreciation is a crucial accounting practice as it allocates the cost of an contribution margin asset across its useful life, matching the expense with the revenue it helps generate. This approach allows businesses to reflect the decreasing value of the asset accurately on financial statements.…

Illinois has an origin-based sales tax system that makes things easier for you. If you are a local business, you must charge the tax rate applicable to your location in Illinois. While the state hosts major corporations like Walgreens and State Farm, it faces business…

The company is financing most of its assets through equity rather than high levels of debt. A low debt to asset ratio usually implies the company is being run conservatively and has capacity to take on more debt if required for growth. In other words,…

This allows the manufacturer to recoup some of the expenses spent in producing the items. Indirect materials, electricity charges and salaries of engineer and supervisor are all indirect costs and have, therefore, been added together to obtain total manufacturing overhead cost. The cost of conversion…

It is easy to understand the accounting cycle definition with the steps involved in the process. The steps include identifying and recording transactions to use them for further collective analysis to be aware of a company’s current financial scenario. It is the responsibility of a bookkeeper…