For any business one of the key fundamentals is financial transactions and how they track them. A journal entry is important for all law firms transaction whether they create them manually or with the assistance of any software. Journal entries are the key building blocks that provide various reality checks for business leaders, such as […]

Financial reporting is an accounting process that is primarily used to communicate financial information. Most companies perform some sort of external or internal financial reporting and sometimes both. It is one of the essential processes for both investors and businesses, as it provides important information regarding the financial performance of a business over a period

In business, it is very important to track the total revenue generated through the sale of goods & services. For any company, whether you’re selling products, services, or both, it’s critical to understand and see at a glance how your business is performing via Total Revenue. Total Revenue is a key performance indicator for all

Reconciliation‍‌‍‍‌‍‌‍‍‌ in accounting plays an important role as it typically entails matching two sets of financial records to verify their correctness and consistency. Among other things, this process enables one to detect errors, identify omitted transactions and explain the differences arising from timing or wrongly recorded entries. Frequent reconciliation strengthens the trustworthiness of financial data,

If you are a businessman or from account related background, you must have heard the term expenditure. In business, it is important to know how you earn and spend money. Every business has to sustain the cost to grow, operate, and maintain activities. In accounting terms, these costs are known as expenditure. Maintaining a proper

A​‍​‌‍​‍‌ profit and loss statement is one of the crucial financial reports that business startups and owners require. It reveals company financial operations in details through the reporting of income, expenses, and total results for a certain period. Business owners can use this statement to get financially performance insights, identify operational strengths, efficiently controlling costs,

A​‍​‌‍​‍‌ Partnership Deed is a legal document that records the terms and conditions of a partnership firm. It lays down in detail the rights, duties, responsibilities and profit sharing ratio of the partners. This kind of agreement is a must have business operation tool, it guards against the opposite of the understanding and also allows

For a successful business, it is important to understand your company’s finances. Predetermined overhead rate (POHR) is an important parameter related to manufacturing industry. In easier terms, it is a type of allocation rate used to estimate cost of manufacturing over a certain time period. It may sound technical but it is a powerful yet

Doing business requires more than just a good idea; it requires many factors. Stockholders equity is one of the most important factors needed to get business success. The stockholders equity is the reason for the good financial health of the business. But all business can’t able to manage a positive stockholders equity, which will result

Every company comes to this digital market with some unique concepts and ideas, and tries to grow rapidly. For that, they provide their goods or services and allow their customers to pay later. When a company finds any late payment, invoice due date expired, or a credit sale, then the company uses the accounts receivable

Understanding how to calculate total equity is one of the most important concepts in accounting and business finance. Total equity play a crucial role in business, its give a clear image of financial position and helps business owners, investors, and accountants. They know how much value actually belongs to them after paying all debts. In

Understand the concept of partnership accounting, see how a business can smoothly run having more than one owner. Partnership accounting is the concept of documenting all the financial data that ensures the smooth flow of a business with partners. Partnership accounting is important in a business that is owned by two or more owners. In

Running a successful business always depends on balancing growth with important spending. Expansion always comes with difficulties, so the business needs to manage its retained earnings, which will help it in business growth. Retained earnings play a vital role in the success of a business. But many businesses struggle to handle their retained earnings and

In our day-to-day life, both individuals and business have their basic needs. This includes fixed expenses such as phone or internet plans, subscriptions, rent, depreciation, and software fees, and variable expenses such as entertainment, raw materials for businesses, monthly groceries, gas, shipping, etc. All these expenses, for both individuals and businesses, are tracked on a

​‍​‌‍​‍‌​‍​‌‍​Fixed​‍​‌‍​‍‌​‍​‌‍​‍‌ expenses are regularly incurred costs that remain constant during a certain period its easily enabling the one to plan and manage finances easily. Such costs are usually part of people’s as well as businesses’ budgets and, remaining unchanged, don’t depend on the level of usage or earnings. To prepare a good financial skills, plan

Inventory is a vital part of a company’s financial reporting because it directly affects assets, profitability and cash flow. Understanding where inventory appears in the financial statements and how it is accounted for helps users accurately assess a business’s financial performance and overall financial position.In this blog we will discuss what is inventory accounting, different