Accounting Tools
APRIL 8, 2023
Related Courses Budgeting Capital Budgeting Effective Sales Forecasting There are several disadvantages to the use of budgeting within a business. These issues may convince you to avoid the use of budgets entirely. The key disadvantages are noted below. Time Required It can be very time-consuming to create a budget, especially in a poorly-organized environment where many iterations of the budget may be required.
Accounting Tools
APRIL 8, 2023
Related Courses Accounting for Intangible Assets Accounting for Software Software capitalization involves the recognition of internally-developed software as fixed assets. Software is considered to be for internal use when it has been acquired or developed only for the internal needs of a business. Examples of situations where software is considered to be developed for internal use are accounting systems , cash management tracking systems, membership tracking systems, and production automation s
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Accounting Tools
APRIL 8, 2023
Related Courses Excel Formulas and Functions Financial Analysis Introduction to Excel The formula for the present value of a future amount is used to decide whether to make or receive a payment now or in the future. The calculation shows which option has the higher present value, which drives the decision. The formula for calculating the present value of a future amount, using a simple interest rate , is as follows: P = A/(1 + nr) Where: P = The present value of the amount to be paid in the futu
Accounting Tools
APRIL 8, 2023
Related Courses Fair Value Accounting What is Market Price? Market price is generally considered to be the price at which an asset can be bought or sold. There are several variations on the concept, depending upon the context in which it is used. The alternative definitions are noted below. Market Price of Securities Traded on an Exchange If debt securities or equity securities are traded on an exchange, their market price is considered to be the last price at which they were sold.
Speaker: Victor C. Barnes, CPA, MBA
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.
Accounting Tools
APRIL 8, 2023
Related Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model What is the Audit Risk Model? The audit risk model determines the total amount of risk associated with an audit , and describes how this risk can be managed. The model incorporates three types of audit risk into the following equation: Audit risk (AR) = Control risk (CR) × Detection risk (DR) × Inherent risk (IR) The three types of audit risk included in the equation are expanded upon below.
Accounting Tools
APRIL 8, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook A journal entry is a method used to enter an accounting transaction into the accounting records of a business. Every journal entry must generate at least two equal and offsetting entries. This is because every transaction involves a change in at least two places in the accounting records, and the total of all debits and credits must balance.
Financial Ops World brings together the best financial operations content from the widest variety of thought leaders.
Accounting Tools
APRIL 8, 2023
Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is a Nominal Account? A nominal account is an account in which accounting transactions are stored for one fiscal year. At the end of the fiscal year, the balances in these accounts are transferred into permanent accounts. Doing so resets the balances in the nominal accounts to zero, and prepares them to accept a new set of transactions in the next fiscal year.
Accounting Tools
APRIL 8, 2023
Related Courses Expense Report Best Practices Optimal Accounting for Payables Payables Management What is an Expense Report? An expense report is a form used to track business spending. It is most commonly completed by employees to itemize expenditures for which they are requesting reimbursement. Receipts are typically attached to the form if the related expenditure amounts exceed a certain minimum amount.
Accounting Tools
APRIL 8, 2023
Related Courses Corporate Finance Treasurer's Guidebook What is Participating Preferred Stock? Participating preferred stock gives its holder participation in the additional earnings of a business. The participation feature increases the value of the stock , allowing the issuer to sell it at a higher price. This participation is in addition to the usual fixed dividend associated with most types of preferred stock.
Accounting Tools
APRIL 8, 2023
Related Courses Business Ratios Guidebook Accounting for Inventory Inventory Management What is Inventory Velocity? Inventory velocity is the time period from the receipt of raw materials to the sale of the resulting finished goods. Thus, it is the period over which a business has ownership of inventory. It is very much in the interest of a company to keep inventory velocity as high as possible, for the reasons noted below.
Speaker: Kim Beynon, CPA, CGMA, PMP
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.
Accounting Tools
APRIL 8, 2023
Related Courses Optimal Accounting for Payables Payables Management Recording a credit card payment involves the detailed entry of information from a credit card statement into a company’s accounting system. When a credit card processor submits a credit card statement to a company, the company is essentially being presented with a large invoice that includes many line items for a wide array of purchases.
Accounting Tools
APRIL 8, 2023
Related Courses Accounting for Casinos and Gaming What is a Base Jackpot? A base jackpot is the minimum fixed amount of a payout by a slot machine for a certain combination. Accounting for a Base Jackpot A casino must accrue a liability for a jackpot won by a customer as soon as there is an obligation to pay. A liability is recorded for slot machines that contain a base jackpot.
Accounting Tools
APRIL 8, 2023
Related Courses Capital Budgeting Financial Analysis What is the After-Tax Real Rate of Return? The after-tax real rate of return is the percentage rate of return on an investment after deducting taxes and adjusting for inflation. It represents the actual financial benefit experienced from an investment. This approach shows less of a difference from the nominal rate of return when dealing with investments in inflation-adjusted securities, since there is no need for an inflation adjustment to the
Accounting Tools
APRIL 8, 2023
Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is an Accrued Receivable? An accrued receivable is a trade receivable or a non trade receivable for which a business has earned revenue , but for which it has not yet issued an invoice to the customer. When to Accrue a Receivable An accrued receivable is normally created when a milestone has been reached in a contract with a customer, where the company is clearly entitled to a specific, predefined amount
Speaker: Mark Gilham, FCCA, CPP
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.
Accounting Tools
APRIL 8, 2023
Related Courses Capital Budgeting Financial Analysis What is the Time-Adjusted Rate of Return? The time-adjusted rate of return is the discount rate that causes the present value of cash inflows associated with an investment to equal the present value of its cash outflows (usually the initial cash outlay and any incremental increase in working capital ).
Accounting Tools
APRIL 8, 2023
Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Price to Sales Ratio? The price to sales ratio values a business by comparing the market price of its stock to its net sales. In essence, the ratio shows the value that the market is placing on each dollar of sales that a business is generating. How to Calculate the Price to Sales Ratio The ratio is calculated by dividing the market capitalization of a firm by its annual net sales.
Accounting Tools
APRIL 8, 2023
Related Courses The Balance Sheet The Interpretation of Financial Statements When a business incurs an expense , this reduces the amount of profit reported on the income statement. However, the incurrence of an expense also impacts the balance sheet , which is where the ending balances of all classes of assets , liabilities , and equity are reported.
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