Category: Bookkeeping

Additionally, PEOs ensure compliance with state and federal regulations, helping businesses avoid costly fines or penalties. Working with a PEO for workers’ comp saves money, reduces administrative burdens, and ensures compliance. On the employee side, it offers financial security and support during recovery, ensuring that they can cover necessary medical expenses and potentially replace lost…

FreshBooks has simple online accounting software for small businesses. Cost accounting concerns itself with recording and analyzing manufacturing costs. It looks at a company’s fixed (unchanging and constant costs, like rent) and variable costs (changing costs, like shipping charges). Then it looks at how they affect a business, and how these costs can be better…

Next, you will need to allocate the cost of the activities to the individual products. Estimates and allocations based on logical assumptions are better than precise amounts based on faulty assumptions. Costs may be classified as manufacturing costs and non-manufacturing costs. Higher minimum rates might be necessary to limit heterogeneity in rates and reduce transshipment….

Because bonds are a form of debt, they must be repaid even if a company is making a profit or not. As such, they represent a higher risk for investors than equity investments. However, bonds typically offer lower interest rates than other types of loans, making them an attractive option for companies in need of…

Rippling doesn’t list pricing for any of its services beyond its $8 per-employee fee for payroll. Users also pay a monthly base fee to access Rippling Platform, Rippling’s proprietary platform, though the base fee isn’t listed online. If your business is looking for software that combines payroll and HR tools into one comprehensive package, it’s…

Retained earnings appear on the balance sheet under the shareholders’ equity section. However, they are calculated by adding the current year’s net profit/loss (as appearing in the current year’s income statement) and subtracting cash and stock dividends from the beginning period retained earnings balance. A retained earnings statement works like a snapshot of a company’s…

Because it involves personal guarantees, the owners and management of the company must maintain adequate liquidity to buy back their non-performing accounts receivable if necessary. Although the company is still liable for invoices that are past the due date, they are no longer under the responsibility of the company for non-payment. A discount on notes…

Effective bookkeeping will help every owner, whether you are just starting or you are managing an established business, comply with taxes and facilitate transparency. All of the money in your deposit accounts and investments, plus the value of your home, furnishings, vehicles and other valuable belongings are considered assets. This includes products purchased for inventory, office…