Category: Bookkeeping

  • Accounts Payable vs Notes Payable: Differences & Examples

    The company obtains a loan of $100,000 against a note with a face value of $102,250. The difference between the face value of the note and the loan obtained against it is debited to discount on notes payable. The notes payable are not issued to general public or traded in the market like bonds, shares…

  • Why a Flexible Budget May Be a Good Option for Your Business

    A flexible budget cannot be preloaded into the accounting software for comparison to the financial statements. Only then is it possible to issue financial statements that contain budget versus actual information, which delays the issuance of financial statements. Flexible budgeting can be used to more easily update a budget for which revenue or other activity…

  • Cash Ratio Analysis Formula Example

    Since the interest expense will be the same in both cases, calculations using EBITDA will produce a higher interest coverage ratio than calculations using EBIT. Companies need to have more than enough earnings to cover interest payments what are assets, liabilities, and equity in order to survive future and perhaps unforeseeable financial hardships that may…

  • What is Double Entry Accounting: Navigating Financial Transactions

    These digital tools have revolutionized the way businesses manage their financial records, bringing automation and efficiency to the core principles of double entry accounting. From simple spreadsheet-based applications to advanced cloud-based platforms, accounting software has evolved to cater to diverse needs and complexities. Double entry accounting is the driving force behind these statements, ensuring their…

  • 7 Best Hillsboro Accountants

    As for advisory services, the team handles business entity selection, business succession planning, and cash flow budgeting. TD Consulting Group was founded in 1995 by Tom Dragicevic, who was exposed to accounting and entrepreneurship at the age of 12 in his family grocery business. We specialize in a wide variety of accounting and tax services…

  • Chart of Accounts COA Definition, How It Works, and Example

    National banks usually offer their own ATM network or are partnered with a national network like Allpoint. There are other online checking account benefits that make these accounts strong options overall, including high interest rates and cash-back perks. Obligations can be filled through the transfer of funds or the provisioning of goods or services to…