Private Practice Accountants
Based on those trends she developed success ratios as a way to quickly determine the health of a practice. A personal account (like the one you most likely use currently) is used to manage your own expenses. If you operate as a sole proprietorship, you are not required to open a separate business bank account, […]
What are turnover ratios?
In some cases, the fund’s manager might be “churning” the portfolio, or replacing holdings to generate commissions. Two of the largest assets owned by a business are usually accounts receivable and inventory, if any is kept. Both of these accounts require a significant cash investment, and it is important to measure how quickly a business […]
The Accounting Equation: What It Is & The Effects of Common Transactions
This opportunity to provide a service or realize potential economic gain for the company will ultimately result in cash inflows (also known as receipts). The accounting equation is applicable to all economic entities, irrespective of their size, type of business, or organizational structures for conducting business. Eric is an accounting and bookkeeping expert for Fit […]
What Is a Debt-To-Equity Ratio and How Can Investors Use It?
If the company is aggressively expanding its operations and taking on more debt to finance its growth, the D/E ratio will be high. Investors, lenders, stakeholders, and creditors may check the D/E ratio to determine if a company is a high or low risk. In contrast, service companies usually have lower D/E ratios because they […]
General Journal: Definition, Journal Entries and Examples
This ensures consistency, accuracy, and efficient retrieval of information for financial reporting, analysis, and auditing purposes. The general journal is a manual or digital document where each transaction is recorded using a standardized format. It provides a detailed account of the date, description, accounts involved, amounts, and reference numbers for each transaction. In this article, […]
What Contribution Margin Means to Your Business
The contribution margin ratio (CMR) expresses the contribution margin as a percentage of revenues. This example highlights how businesses can tweak and package products to influence sales while still maximizing contribution margins. Because of the revenue recognition principle, contribution margin applies equally whether your business sells directly to customers or is sold through partners. It’s […]
Book Value per Share Formula with Calculator
He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Market value is another important metric; however, NBV and market value typically aren’t equal. Net Book Value Calculation Example (NBV) […]
What Contribution Margin Means to Your Business
The contribution margin ratio (CMR) expresses the contribution margin as a percentage of revenues. This example highlights how businesses can tweak and package products to influence sales while still maximizing contribution margins. Because of the revenue recognition principle, contribution margin applies equally whether your business sells directly to customers or is sold through partners. It’s […]
7 Cash Flow Management Tips for Restaurants
With the right tools, templates, and knowledge, you can manage your cash flow effectively on your own. However, seeking professional advice is recommended if you encounter complex financial situations or require specialized expertise. Format the cells as desired to make the cash flow statement easy to read and understand. Let’s talk about your offer! Start […]
What Is Just in Time Inventory? A Retailers Guide
Fast-food chains like McDonald’s and restaurant groups like Darden Restaurants have implemented JIT techniques to ensure that the right ingredients are available at the right time. The JIT management style was first introduced in the 1970s in Japan by the car manufacturer Toyota; occasionally, JIT management is referred to as the Toyota Production System (TPS) […]