Whether you sell baseball cards, baseballs, or tickets to a baseball game, your business still needs a bookkeeper or an accountant, or ideally, both.
Though bookkeeping and accounting are two terms frequently used interchangeably, they are different. A bookkeeper’s responsibilities are mainly transactional, gathering and entering financial transactions. By contrast,...
As an accountant, one of the skills I appreciate the most in small business owners is records management. Business owners are told to keep track of tons of records — schedules and forms, even the ones you accidentally spilled maple syrup on — and I’m here to tell you about one more: depreciation schedules.
Building a business takes money. If you’re starting a brick-and-mortar traditional business, it could take tens of thousands of dollars to get things rolling. If you’re dealing with intensive infrastructure needs, you may need even more — in the realm of hundreds of thousands or millions of dollars. At the other end...
Your postage machine just stopped working, and you need to send one of your employees to the post office fast to get some stamps. The only problem is she has no cash and her credit card is maxed out.
That’s where petty cash comes in. Petty cash is the money...
A couple of months into the COVID-19 pandemic that struck the world unexpectedly (and with full force), causing uncertainty and instability for both companies and individuals alike, we all learnt that the first challenge in keeping our enterprises running was cash flow. Most industries were hit hard, and consequently, businesses were...
We go into business to make money, so wouldn’t you want to know how much money you’re making? That’s why calculating net profit margin can be so useful. Net profit margin lets you see exactly how much money your business is making after all related expenses have been taken into account.
If your company has no debt requiring an interest payment, the cash coverage ratio is not useful. However, for those of you carrying debt with interest expense, it can be extremely useful.
The cash coverage ratio is an accounting ratio that is used to measure the ability of...