Bookkeeping

We briefly go through commonly found line items under Current Assets, Long-Term Assets, Current Liabilities, Long-term Liabilities, and Equity. Managing long-term debt effectively is essential for a company’s financial health and long-term success. On a more granular level, the fundamentals of financial accounting can shed light on the performance of individual departments, teams, and projects. […]

There is also a cost for each unit held in storage, commonly known as holding cost, sometimes expressed as a percentage of the purchase cost of the item. Although the EOQ formulation is straightforward, factors such as transportation rates and quantity discounts factor into its real-world application. Holding cost is the total costs a company […]

Invoice financing (some circles also refer to it as invoice finance, invoice discounting, or debtor finance) is a way for startups to borrow capital from their unpaid invoices. As opposed to invoice factoring where startups sell their receivables at a discount to an invoice financing company, with invoice financing, they still retain ownership of the […]

Analysts view the assets minus liabilities as the book value or equity of the firm. In some instances, analysts may also look at the total capital of the firm which analyzes liabilities and equity together. In the asset portion of the balance sheet, analysts will typically be looking at long-term assets and how efficiently a […]

Hence, when a vendor invoice is recorded, Accounts Payable will be credited and another account must be debited (as required by double-entry accounting). When an account payable is paid, Accounts Payable will be debited and Cash will be credited. Therefore, the credit balance in Accounts Payable should be equal to the software outsourcing in romania […]