What Is Sales Tax?In simple words, sales tax is a little extra the buyers pay when they purchase something in the store. If your item costs $1, the sales tax makes the price go higher up to $1.09 or $1.04 or something along these lines depending on w... Read more
OverviewThe goal of most businesses is to make a profit. However, it often happens so that the company has great sales and the sales figure is impressive, but when you look down the Income Statement, you realize that most of this money earned went to... Read more
OverviewThe going concern principle plays one of the key roles in accounting and auditing. The term assumption is closely related to this concept. Its idea is that when forming the accounting and reporting methodology, we do not take into account the... Read more
Why You Need Nonprofit AccountingInstead of the goal of making a profit, non-profits strive to achieve social, charitable, educational, and other goals, act to meet the needs of citizens, protect the rights and legitimate interests of citizens and or... Read more
Importance of business valuationValuation is the process of determining how much an asset is worth. The same methods used to value assets are used to value companies. Business valuation is necessary for several reasons. These include the following:Un... Read more
"A budget is telling your money where to go, instead of wondering where it went." - John MaxwellMeaningA budget report is a quantitative business plan prepared by management for the next quarter, year, or even several years. A budget report usually w... Read more
OverviewAccounting is a strictly documented recordkeeping of the financial activity of an entity. Accounting data is necessary to monitor and control the activities of the organization. Cost accounting is exactly what it sounds like or how a company... Read more
What are financial reports?For effective management and planning of the company's activities, as well as when attracting investments, all financial indicators must be properly structured and monitored regularly. This can be done using financial repor... Read more
At the end of each accounting period, a company will have to account for various liabilities that represent the lines of loss and expenses. They are various in nature, hence the neutral word ‘liability’ is used in these instances.The accrued payroll... Read more
FIFO & LIFO approaches can be hard to understand because even though they are clearly different, they don’t seem to make a lot of sense at first. Why distinct them, and what use are they? You’ll have to understand what they are before getting int... Read more
