Bookkeeping

There are four allowable methods for calculating depreciation, and which one a company chooses to use depends on that company’s specific circumstances. Small businesses looking for the easiest approach might choose straight-line depreciation, which simply calculates the projected average yearly depreciation of an asset https://www.online-accounting.net/ over its lifespan. Since different assets depreciate in different ways, … Read more

The role of account receivable on the balance sheet goes beyond just indicating how much money is owed. It provides valuable insights into a company’s sales performance, customer behavior patterns, and overall profitability. By tracking accounts receivables over time, businesses can identify trends in payment delays or defaults and take proactive measures accordingly. AR turnover … Read more

It’s important for the CEO and others to know this so they can make smart decisions about prices and costs. This ratio also tells us about the company as a whole, like how well it can pay for operating expenses and earn money. It’s a key part of understanding business performance and whether the company … Read more