Short-term loans or lines of credit are other liabilities that need to be repaid within a year, often used for immediate operational needs or to cover temporary cash flow gaps. In accounting, liabilities are debts your business owes to other people and...

The fundraising process includes preparing pitch decks, setting valuation, and negotiating terms. It is crucial for startups to have a clear understanding of their financial needs and growth projections when seeking external funding. Financial planning...

Capitalization ratios in fundamental analysis evaluate a company’s capital structure. Meanwhile, if a company relies too much on debt financing, it risks problems making its required interest and principal payments. U.S. generally accepted accounting...

Statistics say retail business in the U.S. has only 63% of inventory accuracy, leading to stock replenishment errors. Some businesses, especially small ones, still have to use manual inventory operations to have more control over their stock. Retail businesses...

Etsy accounting is crucial for all sellers, regardless of experience level, to track financial data effectively. Let’s understand what you need to know about sales tax collection and the deductions that can save you money. If you use tools like QuickBooks...

ContentPercentage of credit sales methodPercentage-of-sales approach and percentage-of-receivables approachWhat is the Percentage of Sales Method?16. Financial Forecasting – The Percent-of-Sales Method It creates the $3,000 debit in the allowance for...

ContentExamples of Drawings in AccountingWhat type of account is a Drawings?How do you record owners drawings?Drawing AccountAre drawings considered assets or expenses?Are drawings included in the statement of financial position? The amounts of the owners...

ContentHow do you calculate debt tax shield?How can I avoid paying taxes on debt?How does Tax Shield Save on Taxes?DepreciationWhy Does the Depreciation Tax Shield Matter? Since the interest expense on debt is tax-deductible it makes debt funding that...

Common inventory valuation methods include FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and the weighted average cost method. These techniques help in accurately determining the value of inventory on hand. However, they include basic templates...

ContentQuick Tips: Avoid These Mistakes When Calculating Contribution Percentage or MarginDefinition of Contribution MarginWhy Do I Have To Know My Contribution Margin?What is a contribution margin ratio?Sample Calculation of Contribution MarginProduct...