Category: Bookkeeping

Or Stocky’s may be pleased with their leverage and believe Wahoo’s is carrying too much risk. While high DOL can amplify profits during good times, it also magnifies losses during downturns. The optimal DOL varies based on industry dynamics, competitive positioning, and management’s risk tolerance. DOL = Contribution margin / Operating Income Of course, you…

Taxes are imposed on a federal, state, and local level and help pay for public projects like rebuilding infrastructure and funding public programs. As we touched on previously, there are a variety of tax liabilities that may apply to your personal or company tax situation. It’s important to understand which may apply to you, so…

This value is a critical factor in insurance settlements and plays a significant role in the decision-making process when determining whether to repair or write off a vehicle. The calculation of salvage value is a crucial aspect of asset management and financial planning, particularly in businesses where assets depreciate over time. The salvage value is…

Company A has purchased assets and resources for the latest order to be completed. Thus, it decided to apply for a loan instead of issuing shares to investors. The company applied for a loan of $20,000 as it knew the capital built would help it earn more than what was to be repaid. If the…

For instance, construction contractors might prefer a dedicated construction product like Sage 100 or Jonas Premier. At the same time, industry-specific software tends to cost more than basic freelancing software. If you work on your own and don’t have a large budget for financial software, many construction companies do just fine with generic options like…

Now find out how much more Wave can do for you and your business by trying our 100% free invoicing and accounting software. As a freelancer, your flexibility is an incredible advantage. This invoice template for freelancers is also supremely flexible so it can be used to bill all your clients, no matter what freelance…

Accounts receivable financing is a type of asset-based lending arrangement where a company uses its accounts receivables as collateral for a loan. The total accounts receivables balance is determined, and the receivable loan is based on a percentage of that value. As its name implies, this solution gives the client a 1% to 2% discount…

Limited liability companies (LLCs) have grown in popularity for new, privately held businesses. They have eclipsed S Corporations as the preferred business entity for start ups and small businesses based on historical US tax data. That does not mean an LLC is the right choice for every business by any means. A sole proprietorship is…

Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product. Items designated as direct materials are usually listed in the bill of materials file for a product. The bill of materials itemizes the unit quantities and standard costs of all materials…

Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development. It is a growing company that claims to be used by over 40,000 nonprofits. When managing payroll for a nonprofit,…