DOL is one metric that can be used to access the risk profile of a company. A high DOL means that a company is more exposed to fluctuations in economic conditions and business cycles. However, xero hq in the short run, a high DOL can also mean increased profits for a company. Thus, it is […]

This approach can be especially useful for investors and analysts who rely on current valuations to make informed decisions. The historical price of long-term assets is recorded as depreciation expense due to the wear and tear charges incurred due to their use. The asset’s reported value declines throughout its useful life due to this depreciation […]

It’s a straightforward calculation — multiplying the current stock price by the total number of outstanding shares. To sum it up, a weighted average of a company’s outstanding shares gives a more accurate picture of how much a company earned for its investors over a specified time period. It takes into account changes in the […]

All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person. Gusto is a platform that automates payroll filing for all 50 states in addition to automating payroll taxes, deductions and filings and providing employees with the platform to view pay stubs and W-2s […]

As a result, startup accounting can be a bit more complex than that of a small business in the same industry. There are many good reasons for how things work—GAAP (generally accepted accounting principles) has been honed for decades. Keeping good records also means that your life will be easier when it comes to quarterly […]

If total revenue minus total operating expenses is a negative number, this is considered an operating loss. A business’s cost to continue operating and turning a profit is known as an expense. Some of these expenses may be written off on a tax return if they meet Internal Revenue Service (IRS) guidelines. For information pertaining […]

So debits and credits don’t actually mean plusses and minuses. Instead, they reflect account balances and their relationship in the accounting equation. This right-side, left-side idea stems from the accounting equation where debits always have to equal credits in order to balance the mathematically equation. The double entry accounting system is based on the concept of debits and credits. […]

Content Unearned Revenue Journal Entry How confident are you in your long term financial plan? Finish Your Free Account Setup Unearned Revenue in the Books 2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries However, you cannot credit your revenue, or Fees Earned, account at that point because you have not yet […]

Or perhaps a text message from an unidentified “customer support specialist” asking for the company credit card number. A Slack notification from an “internal administrator” requesting confidential VPN credentials. Maybe even a Zoom meeting invite sent by a digital extortionist masquerading as a friendly colleague. Aggregation and management among a plurality of storage providers Also, […]

To reference our early automotive analogy, while every car might run a little differently, they all perform best with proactive care and maintenance. In the same way, a good month end close requires teams to iron out processes, implement checklists, and leverage automation in order to get top-notch closing times. The most efficient accounting teams […]