This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Related Courses Budgeting Capital Budgeting Formulating a budget is essential for many organizations. We note below seven advantages to having (and using) a budget. Planning Orientation The process of creating a budget takes management away from its short-term, day-to-day management of the business and forces it to think longer-term. This is the chief goal of budgeting, even if management does not succeed in meeting its goals as outlined in the budget - at least it is thinking about the company'
Related Courses Accounting for Leases What is a Lease? A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of identified property, plant, and equipment for a stated period of time in exchange for one or more payments. There are several types of lease designations, which differ if an entity is the lessee or the lessor.
Related Courses Accounting for Retirement Benefits How to Account for a Pension The accounting for pensions can be quite complex, especially in regard to defined benefit plans. In this type of plan, the employer provides a predetermined periodic payment to employees after they retire. The amount of this future payment depends upon a number of future events, such as estimates of employee lifespan, how long current employees will continue to work for the company, and the pay level of employees jus
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Account Balance? An account balance is the current total in an account. The concept can be applied to the situations noted below. General Ledger Account In accounting, the account balance is the current residual balance in an account. Under this definition, an account is the record in a system of accounting in which a business records debits and credits as evidence of accounting transactions.
In the climb from contributor to leader, the rules quietly change. But if you’re aiming for the summit, the air gets thinner, and what got you here won’t be enough to get you to the top. 🗻 What made you successful early in your finance career—technical accuracy, sharp analysis, flawless execution—won’t be what carries you to the next level. The higher you go, the more your effectiveness depends on how you connect, adapt, and communicate.
Related Courses Corporate Cash Management Payables Management What is Net Float? Net float is the combination of the mail float , processing float , and availability float , and so represents the full duration of all types of check payment float. The net float is important when a business makes payments and receives payments primarily with checks. It is not an issue when electronic payments are used.
Related Courses Corporate Cash Management What is Net Settlement? Net settlement is a payment settlement system between banks, where a large number of transactions are accumulated and offset against each other, with only the net differential being transferred between banks. Payments handled through a net settlement system usually wait until the end of the day, when all transactions between the banks are summarized and offset against each other by a clearing institution; the clearing institution
Related Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model What is Inherent Risk? Inherent risk is the probability of loss based on the nature of an organization's business, without any changes to the existing environment. The concept can be applied to the financial statements of an organization, where inherent risk is considered to be the risk of misstatement due to existing transactional errors or fraud.
Related Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model What is Inherent Risk? Inherent risk is the probability of loss based on the nature of an organization's business, without any changes to the existing environment. The concept can be applied to the financial statements of an organization, where inherent risk is considered to be the risk of misstatement due to existing transactional errors or fraud.
Related Courses The Income Statement What is the Traditional Income Statement? A traditional income statement employs absorption costing to arrive at a profit or loss figure. This statement contains several blocks of revenue and expense information, which are organized as follows: Revenue block. Usually a one-line aggregation of gross sales and a variety of sales discounts and sales allowances.
Related Courses Corporate Cash Management Treasurer's Guidebook What is Notional Pooling? Notional pooling is a mechanism for calculating interest on the combined credit and debit balances of accounts that a corporate parent chooses to cluster together, without actually transferring any funds between the accounts. It is ideal for companies with decentralized organizations that want to allow some autonomy to their subsidiaries , including their control over bank accounts.
Related Courses Capital Budgeting Excel Formulas and Functions Financial Analysis What is Net Present Value? Net present value is an analysis tool used to decide whether to invest in a capital asset. It is employed as part of the capital budgeting process. A desirable investment is one that yields a positive net present value, which implies that a business will receive excess cash over time as a result of the investment.
Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Normal Spoilage? Normal spoilage is the expected amount of materials that are rendered unusable as part of the production process. This expected amount is included in the standard cost of goods for units produced. This amount is primarily based on historical results, along with input from the industrial engineering staff regarding the expectations for spoilage.
The most overlooked, yet most critical, element of transformation is preparing people for change. Automation and AI aren't just technical upgrades, they’re cultural shifts which can challenge identities. That’s why change management isn’t a side project—it’s the foundation. In finance, where precision and process rule, navigating change can feel especially disruptive.
What are Net Current Assets? Net current assets is the aggregate amount of all current assets , minus the aggregate amount of all current liabilities. There should be a positive amount of net current assets on hand, since this implies that there are sufficient current assets to pay for all current obligations. If the net amount is negative, it could be an indicator that a business is having financial difficulties, and will need additional funding fairly soon.
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Valuation Account? A valuation account is paired with an asset account or liability account , and offsets the value of the assets or liabilities in the paired account. The result of this account pairing is a net balance, which is the carrying amount of the underlying asset or liability.
Related Courses Capital Budgeting Financial Analysis Net present value (NPV) analysis is a way to determine the current value of a stream of future cash flows. It is a common tool in capital budgeting to select the best projects for funding. In essence, you should only invest in a project if it has a positive net present value. To calculate NPV, we use the following formula: NPV = X * [(1+r)^n - 1]/[r * (1+r)^n] Where: X = The amount received per period n = The number of periods r = The rate of
Related Courses Accounting for Inventory How to Audit Inventory What is Next In, First Out? Next in, first out (NIFO) is a cost flow assumption, stating that the cost assigned to a product is the cost required to replace it. This concept is not allowed under any of the accounting frameworks (such as GAAP and IFRS ), so it cannot be used in the preparation of financial statements that are supposed to be constructed under an accounting framework.
Finance used to be the function that counted, now it's the one that’s counted on. 📊 For accounting firms, controllers, and finance leaders, expectations are rising faster than headcount. Businesses want agile forecasts, granular analysis, seamless reporting, and smart automation—often without added resources while demanding uncompromised accuracy and compliance.
Related Courses Revenue Management What is a Price Point? A price point is the suggested retail price of a product or service. It is usually set in relation to the prices at which goods and services are being offered by competitors, or at the prices associated with substitute products. An ideal price point should maximize profitability for the seller.
Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Capital Turnover? Capital turnover compares the annual sales of a business to the total amount of its stockholders' equity. The intent is to measure the proportion of revenue that a company can generate with a given amount of equity. It is also a general measure of the level of capital investment needed in a specific industry in order to generate sales.
Related Courses Budgeting Capital Budgeting What is the Control Cycle? The control cycle is the iterative process of planning, monitoring outcomes, assessing results, and making revisions. The control cycle is commonly applied to the ongoing revision of corporate budgets and process flows. When applying the control cycle to budgeting, the expectation is that each successive version of the budget will be improved, based on the information gleaned when the initial budget is compared to actual resu
Related Courses Accounting for Inventory How to Audit Inventory What is the Moving Average Inventory Method? Under the moving average inventory method, the average cost of each inventory item in stock is re-calculated after every inventory purchase. This method tends to yield inventory valuations and cost of goods sold results that are in-between those derived under the first in, first out (FIFO) method and the last in, first out (LIFO) method.
Great leadership development is the key to sustainable business growth. Are you ready to design an effective program? HR can use Paycor’s framework to: Set achievable goals. Align employee and company needs. Support different learning styles. Empower the next generation of leaders. Invest in your company’s future with a strong leadership development program.
Related Courses Business Strategy New Manager Guidebook What is Competitive Advantage? Competitive advantage is the ability of an organization to gain a material edge over its competitors. Having such an advantage can result in above-average profits or high levels of customer loyalty. One of the key goals of strategy is to develop a set of competitive advantages.
40
40
Input your email to sign up, or if you already have an account, log in here!
Enter your email address to reset your password. A temporary password will be e‑mailed to you.
We organize all of the trending information in your field so you don't have to. Join 52,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
75 
Let's personalize your content