Bookkeeping

A favorable variance occurs when actual resource usage is less than the standard, indicating higher efficiency. Conversely, an unfavorable variance indicates that more resources were used than expected, pointing to inefficiencies. Understanding whether a variance is favorable or unfavorable helps businesses take appropriate actions to either capitalize on efficiencies or address inefficiencies. With this figure …

Relationship Between Variances, Disposing of Variances Leia mais »

It’s useful for business owners looking to save time and avoid common accounting errors. The two key accounting systems are cash accounting and accrual accounting. If your business is still small, you may opt for ‌cash-basis accounting. If you carry inventory or have accounts payable and accounts receivable, you’ll likely use accrual accounting. Another type of …

How to Start a Bookkeeping Business Leia mais »

5 Office space was rented for July, and $ 5,000 was paid for the rental. 10 Collections were made for the services performed on August 6, $ 3,200. 31 Received an order for services at $ 12,000. Introduction to Accounting Increasing a liability is recorded with a credit. Cash is not paid yet so it will …

Exercises: Unit 3 Financial Accounting Leia mais »

They can notice trends and help you set goals for the next stage of funding. Although the criteria for each funding round is unclear, here is an example of when your startup might seek its funding rounds. Your accountant has some expertise to offer when it comes to raising capital. Get access to our SaaS …

The Founders Guide to Startup Accounting Leia mais »