Accounting Cycle Definition & Examples for Business

However, the most common type of accounting period is the annual period. Once the adjusted trial balance is complete, create your financial statement or annual report. In your financial statement, list information in a simple, organized format. Tax authorities, employees and other parties interested in your business’s financial position will review the information in your […]

8 2 Calculations for Direct Materials and Labor Managerial Accounting

This increased the rehearsal hours, and thus the direct labor costs. The difference between the actual direct rate and the expected, standard labor rate is called the direct labor rate variance. All companies fix a standard direct labor cost against which they compare their actual direct labor costs. The variance between the two indicates whether […]

How to Do a Breakeven Analysis with Fixed Cost & Variable Cost

Simply put, a break-even analysis is a financial calculation that will help you figure out how much money you need to earn before your business idea officially crosses into “profitable” territory. At the break-even point, you’ve made no profit, but you also haven’t incurred any losses. This metric is important for new businesses to determine […]

How To Write An Invoice For Freelance Work

Your client is not going to know how much is due if you don’t include a final number! Make sure this number is easy to see and is inclusive of all of the services you performed. For your client to properly know exactly what they are paying for, you need to make sure that you […]

30 3 Change in accounting principle or estimate, or correction of an error

Disclosures related to accounting errors typically include a description of the error, the periods affected, the amounts involved, and the impact on the financial statements. This information is often presented in the notes to the financial statements, which accompany the primary financial documents such as the balance sheet, income statement, and cash flow statement. Once […]

Accounts payable turnover ratio

Accounts payable turnover ratio is important because it measures your liquidity and can show the creditworthiness of the company. For instance, if a company’s accounts receivable turnover is far above that of its peers, there could be a reasonable explanation. However, it is rarely a positive sign, i.e. it typically implies the company is inefficient […]

Bookkeeping Services in Colorado Springs Elite Bookkeeping

Aenten is Colorado Springs, CO small business accounting. Bookkeeping services streamline and organize financial transactions in businesses, fostering accurate records crucial for informed decision-making and seamless tax preparation. bookkeeping colorado springs Enhance financial transparency and operational efficiency with our expert bookkeeping solutions. Maintaining your company’s books is crucial, and we understand that different businesses have […]