Accounting Tools

JUNE 22, 2024

What is Other Comprehensive Income? Other comprehensive income is those revenues, expenses, gains, and losses under both Generally Accepted Accounting Principles and International Financial Reporting Standards that are excluded from net income on the income statement. This means that they are instead listed after net income on the income statement. An example of the reporting presentation of other comprehensive income appears in the following exhibit.

Financial Statements 98

Financial Statements Financial Reporting Tax Accounting 98

Bookkeeping Essentials

JUNE 22, 2024

Open banking could help download your paperless statements if it ever gets here! Til then, you need procedures to ensure it happens if you want audit ready.

Auditing 52

Auditing 52

Accounting Tools

JUNE 22, 2024

What is the Cost of Goods Sold? The cost of goods sold is the total expense associated with the goods sold in a reporting period. The cost of goods sold is subtracted from the reported revenues of a business to arrive at its gross margin ; the gross margin reveals the amount of profit generated prior to selling, general and administrative expenses. Formula for the Cost of Goods Sold The cost of goods sold is calculated by aggregating the period-specific expense listed in each of the general ledg

General Ledger 98

General Ledger Accruals Cost Accounting Invoicing 98

Accounting Tools

JUNE 22, 2024

What is the Margin of Safety? The margin of safety is the reduction in sales that can occur before the breakeven point of a business is reached. This informs management of the risk of loss to which a business is subjected by changes in sales. The concept is useful when a significant proportion of sales are at risk of decline or elimination, as may be the case when a sales contract is coming to an end.

Budgeting 75

Budgeting Financial Analysis Financial Statements Accounting 75

Speaker: Michael Veatch, Senior Director, Implementations & Ella Aguirre, Director of Solution Consulting

Embedding payments can be a transformative step for software companies looking to enhance their platform capabilities, boost customer satisfaction, and drive long-term growth. However, the success of payments hinges on a single thing: implementation. Drawing on real-world insights and experiences, payments implementation experts Michael Veatch and Ella Aguirre will explore actionable strategies that can lead to a transparent, friction-free launch and mitigate potential challenges like technical

Accounting Tools

JUNE 22, 2024

What is Last In, First Out (LIFO)? The last in, first out method is used to place an accounting value on inventory. The LIFO method operates under the assumption that the last item of inventory purchased is the first one sold. Picture a store shelf where a clerk adds items from the front, and customers also take their selections from the front; the remaining items of inventory that are located further from the front of the shelf are rarely picked, and so remain on the shelf – that is a LIFO scen

Financial Reporting 40

Financial Reporting Tax Auditing Accounting 40

Accounting Tools

JUNE 22, 2024

What are Detachable Warrants? A detachable warrant is a derivative associated with a debt security that gives its owner the right to purchase issuer shares at a fixed exercise price. This type of warrant can be detached from the debt security with which it was originally issued, and then sold by itself in a secondary market. This means that an investor can sell the warrants while retaining the related debt security, or do the reverse and sell the security while retaining the warrants.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 22, 2024

What is a Line of Credit Fee? In a revolving line of credit , the borrower can make multiple borrowings up to a predetermined maximum loan amount. In exchange for this service, the lender charges the borrower an annual fee and a monthly servicing fee. The lender charges these fees because it has to reserve funds for the use of the borrower, and incurs costs to oversee the various line of credit transactions.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 22, 2024

What is a Compensated Absence? A compensated absence is employee time off with pay, which can arise in such situations as sick leave, holidays, vacations, and jury duty. These absences routinely arise for employees, but not for contract workers - who are only paid for the hours they work. How to Account for a Compensated Absence To account for a compensated absence, it is not necessary to separately recognize the expense when it is earned and used within the same period, since it is typically ro

Accruals 40

Accruals Accounting Accounting Bookkeeping 40

Accounting Tools

JUNE 22, 2024

What is a Stock Split? A stock split increases the number of shares outstanding. This issuance does not involve the reduction of any company assets (since no cash is being paid out), nor does it increase the cash inflow to the issuer. For these reasons, a stock split can be considered a neutral event that has no impact on either the issuer or the recipient.

Accounting 40

Accounting Accounting Auditing 40

Accounting Tools

JUNE 22, 2024

What is a Stock Subscription? Stock subscriptions are a mechanism for allowing employees and investors to consistently purchase shares of company stock over a long period of time, usually at a price that does not include a broker commission. These arrangements are relatively uncommon, but have some advantages for both parties, as described next. Advantages of Stock Subscriptions There are several advantages associated with stock subscriptions, which are as follows: Lower cost for buyers.

Accounting 40

Accounting Accounting Accounts Receivable Accounts Receivable 40

Speaker: Amanda Adams, Fractional CFO, CPA

Are you ready to elevate your accounting processes for 2025? 🚀 Join us for an exclusive webinar led by Amanda Adams, a seasoned fractional CFO and CPA passionate about transforming back-office operations for finance teams. This session will cover critical best practices and process improvements tailored specifically for accounting professionals.

Accounting