Bookkeeping

You’ll record a total revenue credit of $50 to represent the full price of the shirt. However, the debit to the sales returns and allowances account ultimately subtracts $10 from your revenue, showing that you actually only earned $40 for the shirt. To record a returned item, you’ll use the sales returns and allowances account. […]

Tiered commission means that when a certain benchmark of earning is reached, commission rate increases. Base rate + Commission plan means that a sales agent earns from both a fixed salary and commission. Sales and marketing jobs in many industries, such as automobiles and real estate, generally offer commission-based compensation. It can be part of

The bookkeeper’s key role is to log, store, and retrieve financial records and transactions. This keeps track of all money that comes in or out of a company as well as its debts or the money to be collected. Sole proprietorships, partnerships, LLCs, NGOs, and corporations must all record every financial activity of the company. “When

It also produces numerous types of transaction forms including estimates, invoices, statements, bills, and receipts. Wave lacks dedicated time and project tracking, and its mobile apps are on hiatus at this writing. But all things considered (especially its free status), it’s definitely worth your consideration. Sunrise is a good choice for freelancers and sole proprietors

However, investors usually prefer that companies generate their cash flow primarily from business operations. Focusing on net income without looking at the real cash inflows and outflows can be misleading, because accrual-basis profits are easier to manipulate than cash-basis profits. In fact, a company with consistent net profits could potentially even go bankrupt. The issuance

‘Expansion and Growth’ are the two common goals of an organization’s operations. In case a company does not possess enough capital or has no fixed assets, this is difficult to accomplish. This is a simple way of assessing the profitability of an investment based on financial data. When a company is considering an investment or

Also, keep an eye on the payout ratio; anything above 60% is cause for concern. Dividend stocks can provide you with a source of income that can help you reach your financial goals. Some companies have grown their dividend payments for over 25 consecutive years, and are called dividend aristocrats. Free cash flow is the

When a company earns profits, the board of directors has the discretion to decide whether to distribute those earnings to shareholders in the form of dividends. A dividend is a distribution of a company’s earnings to its shareholders. Dividends are typically paid out quarterly, and they can be in the form of cash or stock.

The table is structured the same as the previous example, however, the cash flows are discounted to account for the time value of money. A higher payback period means it will take longer for a company to cover its initial investment. All else being equal, it’s usually better for a company to have a lower