Sun.Jun 09, 2024

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Assign Custom Roles to QBO-Accountant Team Members for Clients' Books

Insightful Accountant

A new feature rolling out this month allows firms using QBO-Accountant to manage their team member's access to their client's books.

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Negative liability definition

Accounting Tools

What is a Negative Liability? A negative liability typically appears on the balance sheet when a company pays out more than the amount required by a liability. For example, if you were to accidentally pay a supplier's invoice twice, the first payment would reduce the original liability recorded in accounts payable to zero, while the second payment would have no offsetting liability, resulting in a negative liability on the balance sheet.

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Unleash the Power of Excel for QuickBooks Online Reporting with Flash Reports

Insightful Accountant

Are you a QuickBooks Online user who loves the flexibility and power of Excel for financial reporting and analysis? If so, then Flash Reports is the game-changer you've been waiting for.

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Days cash on hand definition

Accounting Tools

What is Days Cash on Hand? Days cash on hand is the number of days that an organization can continue to pay its operating expenses , given the amount of cash available. Managers should be aware of the days cash on hand when a business is starting up, and is not yet generating any cash from sales. It is also worth reviewing during the low part of a seasonal sales cycle, when there may be no sales.

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How to Easily Navigate Crypto Accounting in the Web3 Era

Speaker: Aaron Jacob, VP of Accounting Solutions & Reagan Cook, GTM Lead

Are you struggling to navigate the complexities and challenges that come with crypto accounting? 🤔 This new webinar will cover everything businesses need to know to get started with crypto accounting after incorporating crypto into their business models! Industry experts Aaron Jacob and Reagan Cook of TaxBit will thoroughly explore the prevalent operational hurdles encountered by accounting teams when interacting with crypto on the books, and detail how software solutions can effectively

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Ep. 266: Gaby Lahoud - Overcoming Certification Exam Psychological Barriers

IMA's Count Me

Join Adam Larson in this enlightening episode of the Count Me In Podcast as he chats with Gaby Lahoud , CEO at B Certified Pro and a seasoned certification exam expert with a passion for helping exam takers succeed. Gaby shares invaluable tips on how to go beyond rote memorization and truly understand exam material, which is a game-changer for any certification exam.

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Extended trial balance definition

Accounting Tools

What is an Extended Trial Balance? An extended trial balance is a standard trial balance to which are added columns extending to the right, and in which are listed the following categories: Initial balances per general ledger. These are the account totals as of the end of the accounting period , as compiled from the general ledger. The total of all initial balance debits should equal the total of all initial balance credits.

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General purpose financial statements definition

Accounting Tools

What are General Purpose Financial Statements? General purpose financial statements are those financial statements released to a broad group of users. They are intended for a wide range of uses, such as credit analysis and stock valuations. These statements include the following: Income statement. This report shows the revenues, expenses, and profit or loss of a business over a specific period of time.

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Average age of inventory: overview and calculation

Accounting Tools

What is the Average Age of Inventory? The average age of inventory is the average period of time required for a business to sell off the inventory it currently has in stock. This measurement is commonly used to determine how well a business manages the amount of stock it has on hand. A short average age of inventory implies that a firm is doing a good job of restricting its investment in working capital.

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The benefits of issuing common stock

Accounting Tools

There are a number of benefits associated with the issuing additional shares of common stock. These benefits vary for companies that are publicly held and privately held. For both privately and publicly held companies, the following advantages apply: Advantage 1. Debt Reduction The funds a company receives from its sale of common stock does not have to be repaid, and there is no interest expense associated with it.

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Memo debit definition

Accounting Tools

What is a Memo Debit? A memo debit is a pending reduction in the cash balance of a bank account , which is a debit transaction. The bank has not yet completely processed the transaction; once it has done so (typically during end-of-day processing), the memo debit designation is replaced by a regular debit transaction, and the cash balance in the bank account is reduced by the amount of the memo debit.

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Predictions You Can Rely On: How Data Drives Successful Financial Forecasting

Speaker: Robbie Bhathal, Founder & CEO, and Matthew Acalin, Head of Credit Intelligence

In today's volatile financial environment, how confident are you in your company’s financial forecasting? To get the most accurate cash predictions that will lead to long-term financial survival, real-time data is critical. Innovative cash management strategies can lead to better credit opportunities, more sustainable growth, and long-term financial prosperity.

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Over accrual definition

Accounting Tools

What is an Over Accrual? An over accrual is a situation where the estimate for an accrual journal entry is too high. This estimate may apply to an accrual of revenue or expense. Thus, an over accrual of revenue will result in an excessively high profit in the period in which the journal entry is recorded, while an over accrual of an expense will result in a reduced profit in the period in which the journal entry is recorded.

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Payroll definition

Accounting Tools

What is Payroll? Payroll is the process of providing compensation to employees for their efforts on behalf of a business. It is typically handled by either the accounting department or the human resources department. Many organizations now outsource the bulk of their payroll processing to a third party that specializes in this activity. How to Process Payroll The payroll processing function is highly regimented, and typically involves one of the most-used procedures in the accounting department.

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Return on working capital definition

Accounting Tools

What is the Return on Working Capital? The return on working capital ratio compares the earnings for a measurement period to the related amount of working capital. This measure gives the user some idea of whether the amount of working capital currently being used is too high, since a minor return implies too large an investment. How to Calculate the Return on Working Capital To calculate the return on working capital, divide earnings before interest and taxes for the measurement period by workin

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Benchmark hedge ratio definition

Accounting Tools

What is the Benchmark Hedge Ratio? The benchmark hedge ratio is used to decide upon the targeted proportion of an asset that an organization should hedge in order to reduce the amount of subsequent price fluctuations. The ratio chosen is based on an organization’s appetite for risk, as well as its historical experience with asset price fluctuations in the past.

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The Definitive Guide to Spend Management

The status quo for AP in small and mid-market companies is broken. It consists of messy tech stacks of siloed solutions that give rise to manual work, a lack of control, wasted spend, and unnecessary risks. The benefits of shifting to spend management are tangible, measurable, and are felt across the whole organization. Spend management is a different way of thinking and an innovation whose time has come.

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When to capitalize interest

Accounting Tools

What is Capitalized Interest? Capitalized interest is the interest charge incurred by a business while an asset is being constructed, and which is then added to the cost of the asset. Interest is capitalized in order to obtain a more complete picture of the total acquisition cost associated with an asset , since an entity may incur a significant interest expense during the acquisition and start-up phases of the asset.

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Audit report definition

Accounting Tools

What is an Audit Report? An audit report is a written opinion of an auditor regarding an entity's financial statements. The report is written in a standard format, as mandated by generally accepted auditing standards ( GAAS ). GAAS requires or allows certain variations in the report, depending upon the circumstances of the audit work in which the auditor engages.