October 24, 2021
Charles Lutwidge
Days Payable Outstanding (DPO)
Accounts Payable Accounts payable is a bookkeeping account you will see in most businesses. It means that the company is buying something from suppliers or receiving services from other entities, but it does not pay for anything until sometime later...
Delegate your financial records to a highly qualified bookkeeper and forget about bookkeeping stress forever.
October 23, 2021
Charles Lutwidge
What Is the Equity Method of Accounting?
Overview One of the main advantages of accounting is that in many cases it has clear rules, guidelines, and requirements as to what a business has to do and how it should reflect its various activities on paper. If you...
October 20, 2021
Charles Lutwidge
Meaning and Example of Insurance Expense
Insurance No one is safeguarded from accidents and other unfortunate events that inevitably occur in our lives. Insurance is a way to protect you and your property from various risks. It is primarily the protection of your financial interests in...
October 19, 2021
Charles Lutwidge
Variance Analysis
Budgeted costs Among other questions, an investor would ask about the project costs. The management would need to not only get numbers that are close to what the business will spend but also adhere to these projected numbers to the...
October 18, 2021
Charles Lutwidge
Marginal Cost Formula
Overview When we talk about the production of any product, we always say that the interaction of different elements and processes allows the raw material to become the final product, which is destined to get into the hands of the...
October 17, 2021
Charles Lutwidge
Annual Income: Meaning and Calculation
Overview There are numerous reasons an individual would need to know their total annual income. This can be an application for a loan, tax payments, as well as child support. What is meant by total annual income? Let’s look at...
October 15, 2021
Charles Lutwidge
Accounts Receivable Factoring
Your manufacturing company has received a large contract, shipped a large batch of goods with a deferred payment. The second major client made an order immediately after this transaction and your company definitely does not want to lose this client....
October 13, 2021
Charles Lutwidge
Capital Lease vs Operating Lease
Leases The most common types of leases you will come across as a business owner or an accountant are operating lease and capital lease. Before we do capital lease vs operating lease comparison, let’s first consider what makes businesses go...
