Category: Bookkeeping

In the realm of financial management, it is crucial to have a comprehensive understanding of various accounting concepts and terminology. One such concept is “footing,” which holds significant importance in the field of accounting. It is important to note that footing should not be confused with casting, which involves totaling the rows of a financial…

If there’s any change in your bookkeeping team, we’ll let you know as soon as possible and make sure the transition is a smooth one. We use Plaid, which lets you securely connect your financial accounts to Bench in seconds. This feature saves you the time and effort of manually uploading documents. Request a Consultation…

The restaurant example shows a $3,000 wage expense and a $3,000 wage liability balance posted on March 31. When the business owner pays cash on April 5, the liability balance decreases. If a state has an unemployment tax rate of 4% and an unemployment wage base of $14,000, it means that the employer’s maximum payment…

The accounting rate of return (ARR) is a simple formula that allows investors and managers to determine the profitability of an asset or project. Because of its ease of use and determination of profitability, it is a handy tool to compare the profitability of various projects. However, the formula does not consider the cash flows…

All you need is an Internet connection and a browser! If you’re on-the-go, you can also send invoices from your phone or other mobile device using the Wave app. With Wave’s Pro Plan, you can set up recurring invoices and automatic credit card payments for your repeat customers. Switch between automatic and manual billing whenever…

However, some industries have a much higher quick ratio requirement such as the technology sector which can be as high as 10 or 12. Quick Ratio is also known as the acid-test ratio or liquidity ratio. Someone on our team will connect you with a financial professional in our network holding the correct designation and…

The profitability index can also get referred to as the benefit-cost ratio. Even though some projects have higher net present values, they might not have the highest profitability index. It can be helpful to calculate the net present value prior to calculating the profitability index. Profitability Index Calculator: Quick & Accurate Investment Analysis The Profitability…

Adjusting entries are prepared at the end of an accounting period to consider income or expenses that have not yet been recorded in the general ledger. As a result, these entries can be for accrued expenses, accrued revenues, prepaid expenses, deferred revenues, and depreciation. However, reconciling individual account balances becomes extremely easy with online accounting…

Taxation is a key area where LLCs and S corporations differ significantly. By default, LLCs can be taxed as sole proprietorships or partnerships, depending on the number of members. This means that the LLC’s income is passed through to the owner’s tax return, and the owner is responsible for paying taxes on the profits at…

Accounting is the process of keeping track of all financial transactions within a business, such as any money coming in and money going out. It’s not only important for businesses in terms of record keeping and general items that make up merchandise inventory business management, but also for legal reasons and tax purposes. Though many…