Companies may issue stock to raise capital for business operations or to let insiders sell their shares. By comparing total equity to total assets belonging to a company, the shareholders equity ratio is thus a measure of the proportion of a company’s asset base financed via equity. The formula to calculate shareholders equity is equal […]
Category Archives: Bookkeeping
This is why it’s also referred to as the times interest earned ratio. Specifically, the interest coverage ratio (ICR) tells you how many times over your earnings can pay off the current interest https://www.quick-bookkeeping.net/whom-may-i-claim-as-a-dependent/ on your debt. So, if you have an ICR of 3.5, that means you can pay off your interest 3.5 times […]
Options can help investors who are holding a losing stock position using the option repair strategy. Learn how to use the sales revenue formula so you can gauge your company’s continued viability and forecast more accurately. The sales leaders want to know the number of vacuum cleaners they’d need to sell to break even on […]
Your closing journal entries serve as a way to zero out temporary accounts such as revenue and expenses, ensuring that you begin each new accounting period properly. Instead, the basic closing step is to access an option in the software to close the reporting period. Doing so automatically populates the retained earnings account for you, […]
Accountants generally don’t have time for “interviews” during that time of year. If you want to succeed in business, you need to know about financial management. Most remote QuickBooks Live bookkeepers work from home which means you need a reliable hard-wired internet connection and a landline phone. Intuit will provide a laptop with all the […]
Unlike accounting, bookkeeping zeroes in on the administrative side of a business’s financial past and present. Accounting, on the other hand, utilizes data from bookkeepers and is much more subjective. Most software will have your bank data, so you might only need to record the transaction under the expense account, as the software can import […]