There are many reasons why accounting is being outsourced more commonly by different types of businesses and organizations. Some may think that using outsourced accounting services is a bad idea because of less control and more costs, but that is a myth that has been proven wrong countless times. In reality, there are greater benefits …
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Finding a good accountant does not always end up being a simple task. There are so many accountants that seem to appear every year, it is hard to know who to choose to put in charge of your finances. Finding a accountant is a very serious task that is never taken lightly, especially since it …
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The price/earning (P/E) ratio is another measurement that’s of particular interest to investors in public businesses. The P/E ratio gives you an idea of how much you’re paying in the current price for stock shares for each euro of earning. Earnings prop up the market value of stock shares, not the book value of the …
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While some lines of an income statement depend on estimates or forecasts, the interest expense line is a basic equation. When accounting for income tax expense, however, a business can use different accounting methods for some of its expenses than it uses for calculating its taxable income. The hypothetical amount of taxable income, if the …
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Of course profit and cost of goods sold expense are the two most critical components of an income statement, or at least they’re what people will look at first. But an income statement is truly the sum of its parts, and they all need to be considered carefully, consistently and accurately. In reporting depreciation expense, …
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The first and most important part of an income statement is the line reporting sales revenue. Businesses need to be consistent from year to year regarding when they record sales. For some business, the timing of recording sales revenue is a major problem, especially when the final acceptance by the customer depends on performance tests …
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Accounting has been defined as, by Professor of Accounting at the University of Michigan William A Paton as having one basic function: “facilitating the administration of economic activity. This function has two closely related phases: 1) measuring and arraying economic data; and 2) communicating the results of this process to interested parties.” As an example, …
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Accountancy software is a very important tool which helps a business tremendously. With all of the accountancy software on the market, it is hard to know what type of accountancy software you should buy. Choosing the right accountancy software for your business, is just as important if not more important then making other critical decisions …
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Measuring profits or net income is the most important thing accountants do. The second most important task is measuring costs. Costs are extremely important to running a business and managing them effectively can make a substantial difference in a company’s bottom line. Any business that sells products needs to know its product costs and depending …
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Budgeting is an absolute necessity to all business. But does tend to get neglected. To prepare a reasoned and thoughtful budget, an accountant must start with a broad-based critical analysis of the most recent actual performance and position of the business by the managers who are responsible for the results. Then the managers decide on …
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