What is Negative Retained Earnings?
Close monitoring of the target’s financial performance ensures timely corrective actions, enabling the combined entity to move toward long-term financial stability. Although liquidity negative retained earnings ratios like the current ratio do not directly incorporate retained earnings, they can still be indirectly affected. Negative retained earnings often signal cash flow challenges, which might impact a […]
A Simplified Explanation and Illustration of the Inventory Price Index Computation IPIC Method
As such, a business must choose a method of closing stock provision that will suit the operation model it has chosen. Closing stock is an Partnership Accounting important measure meant to be properly valued to obtain accurate financial reports. LIFO, or last-in first-out, is an inventory valuation method that assumes the most recently purchased items […]
Free Financial Projection and Forecasting Templates
These assumptions are necessary because they fill the gap between the known present and the uncertain future. They enable startups to model potential financial outcomes based on different scenarios, helping founders and investors make informed decisions. Financial forecasting is an indispensable exercise for startups, providing clarity and direction in a sea of uncertainty. By meticulously […]
Financial Forecasting for Startups: A Step-by-Step Guide ROK Financial
That said, it’s pretty typical that in the formative stages of normal balance a startup GM will be negative — and that can be OK for a while. Feel free to drop in whatever recurring revenue values that are predicted for January (Month 1) in this spreadsheet. Each successive month we will churn 25% of […]
Solved: Do I count sales tax I collected as income in my small business?
Segregate the duties of individuals responsible for recording and reporting gross sales from those responsible for collecting and remitting taxes. There are so many important details that businesses must be aware of to stay compliant and avoid penalties. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day […]
Do I Include Sales Tax In Gross Receipts For Taxes
The sum of all the receipts from sales of an entity unaffected by any adjustments is gross sales. Although they have their uses in accounting, presentation, and tax payment, they are not of much use after the net sales have been calculated. At first glance, it may look good, but that may be before the […]
Understanding a chart of accounts in construction
In construction, a production contract can last for years and involves multiple rolling payments. The terms and conditions typically allow payment of invoices for 30 days, 60 days, and even 90 days or more. Keeping track of payroll is another element where construction bookkeeping is essential. Unfortunately, it’s not as simple as agreeing on compensation […]
