Category: Bookkeeping

  • LIFO Reserve Formula Example

    A higher LIFO reserve generally indicates rising inventory costs over time. Tracking this reserve provides useful insight into cost trends and the potential tax implications if inventory levels decline significantly. Overall, understanding the drivers behind changes in the LIFO reserve assists companies with inventory and production planning. Selling old inventory layers means tapping into cheaper…

  • How to Calculate Direct Labor Variances

    How would this unforeseen pay cutaffect United’s direct labor rate variance? Thedirect labor rate variance would likely be favorable, perhapstotaling close to $620,000,000, depending on how much of thesesavings management anticipated when the budget was firstestablished. If customer orders for a product are not enough to keep the workers busy, the production managers will have…

  • Equity Value Per Share Formula + Calculator

    MVPS is forward-looking with the investment community’s perception of the value of the claims, while BVPS is more on the accounting side. For example, if a company has a total asset balance of $40mm and liabilities of $25mm, then the book value of equity (BVE) is $15mm. As suggested by the name, the “book” value…

  • Eight ‘Rules’ For Safely And Smartly Scaling Your Business

    You also have a fiduciary obligation to external stakeholders that you don’t have when operating bootstrap,” Dalagelis notes. Otherwise, a term loan can provide a quick cash infusion for larger, one-time expenses, such as purchasing a piece of equipment, hiring staff, or purchasing real estate. If you’re not in a position to take on more…

  • Cost Accounting: Definition and Types With Examples

    In modern times, items that would formerly go specifically to plant, will now be categorized in the broader term property, plant, & equipment, which is another term for fixed assets. Large physical assets that are intended to provide a future economic benefit to the purchasing firm are considered plant assets. It is important for stakeholders…

  • Bookkeeper Balancing The Books N More Llc Denver

    She is proactive about advice, keeps me aware of tax deadlines and is a fantastic and empathetic communicator. Our advisor directory connects you to accountants and bookkeepers in Denver. Our fractional CFO services provide you strategic support including cash flow, budgeting, lender packages, and so much more. What Customers Say ? The firm helps businesses…

  • 1 10 Adjusting Entry Examples Financial and Managerial Accounting

    Net income and the owner’s equity will be overstated, while expenses and liabilities understated. This principle only applies to the accrual basis of accounting, however. If your business uses the cash basis method, there’s no need for adjusting entries. This is posted to the Salaries Expense T-account on the debit side (left side). You will…