Accounting Tools

MARCH 2, 2024

What is a Bank Balance? A bank balance is the ending cash balance appearing on the bank statement for a bank account. The bank balance can also be derived at any time when an inquiry is made regarding the bank's record of the cash balance in an account. What is a Book Balance? A book balance is the account balance in a company's accounting records. The term is most commonly applied to the balance in a firm's checking account at the end of an accounting period.

Bank Reconciliation 40

Bank Reconciliation Deposits Reconciling Bookkeeping 40

Accounting Tools

MARCH 2, 2024

What is Operating Cash Flow? Operating cash flow is the net amount of cash that an organization generates from its operating activities. It does not include any investing or financing activities. This information is used to determine the viability of the core operations of a business, since positive cash flow is needed to maintain and grow a firm’s operations over time.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

MARCH 2, 2024

What is Human Capital? Human capital is the value represented by the skills and experience of employees. When properly deployed, human capital should result in a high level of productivity , which in turn increases a company's market position, profits , and/or cash flows. A logical outcome of the human capital concept is that a business can increase it by investing in the training of its employees.

Financial Statements 40

Financial Statements Payroll Accounting Accounting 40

Accounting Tools

MARCH 2, 2024

What is Equity Spread? Equity spread measures the value created by the equity base of a business. It is the difference between the return on equity for a period and the cost of equity, which is then multiplied by the beginning equity balance. A well-managed company that occupies a secure market niche should be able to maintain a strongly positive equity spread.

Financial Analysis 40

Financial Analysis Financial Statements Accounts Receivable Accounts Receivable 40

Speaker: Timothy Allsopp

Payment challenges often lead to delayed projects, financial bottlenecks, and strained relationships. With construction projects becoming more complex, outdated processes are no longer sustainable. By refining financial workflow, companies can improve cash flow, reduce error, and foster trust between stakeholders. Discover practical strategies for redesigning payment systems to overcome workflow challenges while creating a smoother, more reliable process for contractors and subcontractors alike.

Invoicing

Accounting Tools

MARCH 2, 2024

What is Entity Theory? Entity theory is the concept that the transactions associated with a business should be separated from those of its owners. Under this theory, the owners are not responsible for the liabilities of the organization, so their assets should not be commingled with it. This means that separate accounting records should be maintained for the business that does not include any of the assets or liabilities of its owners.

Bookkeeping 40

Bookkeeping Accounting Accounting 40

Accounting Tools

MARCH 2, 2024

What is an Equipment Trust Certificate? An equipment trust certificate (ETC) is a debt that is secured by an asset. While a borrower is paying off the debt, the title to the asset is held in trust. The trust holds title to the asset, and investors buy trust certificates, thereby providing the trust with sufficient capital to buy the asset. Once the debt is paid off, the title is transferred from the trust to the borrower.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MARCH 2, 2024

What are Extraordinary Repairs? Extraordinary repairs are extensive repairs to machinery, with the intent of prolonging the life of the machinery. An extraordinary repair is not considered to be normal preventive maintenance, which is only intended to make machinery attain its originally intended life span. Instead, an extraordinary repair is targeted at those parts of a machine that will wear out by the expected asset retirement date, so that the machine can continue to function for a prolonged

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

MARCH 2, 2024

What are Cash Sales? Cash sales are sales in which the payment obligation of the buyer is settled at once. Cash sales are considered to include bills, coins, checks , credit cards, and money orders as forms of payment. The term can also refer to the sale of a security that requires immediate delivery. Advantages of Cash Sales A key advantage of a cash sale is that it eliminates the need for the seller to extend credit to a customer.

Billing 40

Billing Bookkeeping 40

Accounting Tools

MARCH 2, 2024

What is a Cash Transaction? A cash transaction involves the exchange of cash for an asset. Because the exchange is immediate, the seller undertakes no credit risk that the buyer will not pay, as would be the case if credit were granted to the buyer. Cash transactions are most common for smaller retail transactions. Cash Transactions vs. Credit Transactions Cash transactions differ substantially from credit transactions, in which there is a payment delay built into a transaction.

Invoicing 40

Invoicing 40