What is a Good Liquidity Ratio? Types and How to Calculate it
A good liquidity ratio is essential in a small business sorting out its day-to-day expenses. The higher the liquidity ratio, the...
Unapplied cash payment and how to reconcile transactions
This article will discuss an unapplied cash payment and how to reconcile such transactions. Small business owners sometimes receive or make...
Service charge vs Tip: What is the difference?
Understanding service charge vs tip will save you headaches when filing your finances with the Internal Revenue Service (IRS). Service charges...
Unreimbursed Employee Expenses: What are they?
To understand unreimbursed employee expenses, let's look at a situation you've possibly been in when dealing with friends. So, your friend...
Consigned goods and your business finances
Starting up a business has its challenges. From thinking up an idea to birthing it, purchasing the required tools, producing goods/services,...
What does arrears in accounting mean?
When a service is delivered and the agreed payment day is missed, or the pay comes after the due date, it's...
What is the difference between gross profit and net profit?
Understanding the difference between gross profit and net profit helps you see your company's financial position. While gross and net profit...
Accounts payable vs accounts receivable: Knowing the difference
Every business makes and receives payments which, in basic terms, explains Accounts payable vs. Accounts receivable. In this article, you'll understand...
Net 30 Payment Terms: What is it?
As a small business owner, receiving timely payments is often considered one of the most gratifying aspects of managing a business....
What is operating cash flow, and how to calculate it
What is operating cash flow, why is it essential for your business, and how do you calculate it? These are more...