Besides, with the introduction of the Companies Act 2013, the preparation of a Cash Flow Statement is now mandatory for every type of company except OPC (One Person Company) Section 2(40). This post aims to explain cash flow statements, how they work, how to calculate them, and how they compare to other critical financial statements...
While we think there is still time for the executive branch to limit the damage from the new tariff regime, it is too late to prevent the economy from slowing to a crawl. After all, a 25% effective tariff rate and the new 10% minimum tax on imported goods are tantamount to a $410 billion...
If you have numerous checks, many slips have additional space on the back to continue listing them, with a total from the back brought forward to the front. Deposit slips are pretty universal among financial institutions, and they’re there to help the bank establish a written record of deposits and withdrawals done throughout the day....
Often these roles are filled by those fresh out of high school or college who have a love for the entertainment industry, the professionals said. Production accountants come from a variety of backgrounds and enter the field with diverse skills, said Lintinger. You could have an accounting and finance degree, or you could have a...
Analyzing equity changes over time can provide insights into how the company has financed its operations and whether it has generated profits or incurred losses. Horizontal analysis is a valuable tool in financial reporting and decision-making, providing historical insights and facilitating better-informed choices for investors, creditors, management, and regulatory authorities. Its importance extends to areas...
A financial ratio called days sales of inventory (DSI) shows how long it typically takes a business to sell the products in its inventory. To calculate days in inventory, you need data from your financial statements – cost of goods sold and average inventory value. We’ll explain how to determine these figures and do the...
Using cutting-edge technology, Recuvery automates your entire debt collection process, from the first reminder to the final follow-through. This guide delves into the significance of aging reports and why they’re essential for protecting your cash flow. You will also learn about the two key aging methods, an aging report example, and the best platform to...
This two-page form does exactly what it says it does—it helps you report the profit you made or losses you took from your business this year (hopefully you made a nice profit!). It’s also where you’ll report your business expenses and claim any deductions to help ease the pain of filing. For many contractors, especially...
This indicates that the company may have difficulty meeting its short-term obligations and may have a negative net working capital. To provide a detail explanation, net working capital is calculated by subtracting current liabilities from current assets. If the current ratio is less than one, it means that the company’s current assets are not enough...
Every 12 months of an asset’s life, one other yr of Depreciation Expense is recorded. The offset to the Depreciation Expense account is Accumulated Depreciation. Far much less common is the obsolete inventory reserve, which reduces the general inventory value on the balance sheet. This contra account holds a reserve, much like the allowance for...