And many federal and state agencies require audits, depending your organization’s fundraising, size, and spending. Getting an audit sounds great in theory, but if it is not absolutely required by the government or an important funding source, it might not be worth the money, especially for nonprofits with smaller incomes. Think about it—if a nonprofit …
Accounting records store information about all the financial transactions and events of a business. A small business may only have a few financial transactions a day to record while a large, multinational business may have many thousands. The increased temptation to fudge the numbers to present a more appealing picture has not just affected government …
What do accountants do? Accountants’ responsibilities Read More »
The issuer of a fixed-income security is liable to repay the lender the par value on the maturity date. If a 4% coupon bond is issued when market interest rates are 4%, the bond is considered trading at par value since both market interest and coupon rates are equal. This metric is particularly valued by …
A bond’s market value, meanwhile, is the price you’d pay to buy the bond in the secondary market from someone who isn’t the original issuer. When you buy a bond in the secondary market, your effective rate of return differs from the fixed interest rate. When you buy bonds, you’re lending money for a set …
If that ratio is negative, it likely means the company’s shareholder equity is negative. The debt-to-equity ratio is used to evaluate how a fifo vs lifo inventory valuation company uses finances to manage its business with debt vs. equity. Each industry has its own standards of need and what is deemed as a positive or …
Debt-to-Equity Ratio How It Works and How Investors Can Use It Read More »
Interest expense is typically found as a separate line item on the income statement or detailed in the financial statement notes. Stability is generally desirable, and declining ROE can signal deteriorating business performance or rising costs. High ROE can be a good thing, but if it’s coupled with high debt it can be a sign …
Debt-To-Equity Ratio: What it is and How to Calculate it Read More »
In this article, you will learn about the horizontal analysis of financial statements and how to incorporate it into your company’s accounting practices. You will also learn how to do horizontal analysis using an income statement bookkeeping and a balance sheet. The value of horizontal analysis enables analysts to assess the company’s past performance and …
Horizontal Analysis: Analyzing Financial Trends for Future Ready Businesses Read More »
Accrued expenses are important because they help to ensure that financial statements accurately reflect a company’s financial position. By recording accrued expenses, a company can provide a more accurate picture of its liabilities and ensure that its financial statements comply with accounting standards. Accrued expenses refer to expenses that a company has incurred but has …
Incurred Definition, Loss, Expense, vs Paid Expense Read More »
You’ll also be taught how to perform more advanced processes, like connecting bank accounts and third-party apps. It provides access to all core features of QuickBooks, including invoicing, expense tracking, and reporting. You can learn the program at your own pace—meaning you can pause, review and practice as much as you want before moving on …
Members often share guides, tutorials, and insights into the various features of QuickBooks, and they can help you troubleshoot common issues. The best thing is that many online courses come with videos that make learning even easier. This allows you to better understand the specific tasks being discussed, plus you have the option to pause …