Category Archives: Bookkeeping

To calculate the average collection period, divide the average balance of accounts receivable by the total net credit sales for the period. Average collection period is the amount of time it takes for a business to receive payments owed by its clients in terms of accounts receivable (AR). Companies use the average collection period to […]

Implement Early-Out StrategiesEarly-out strategies encourage timely payments by offering customers incentives, such as discounts or reduced late fees, to pay their invoices before the due date. This not only improves cash flow but also fosters positive relationships with your clients. This difference likely stems from their dependence on physical inventory, creating a need for faster […]

Some expenses will have well-defined costs — permits and licenses tend to have clear, published costs. You might have to estimate other costs that are less certain, like employee salaries. Look online and talk directly to mentors, vendors, and service providers to see what similar companies pay for expenses. Outsourcing can save a company money […]

Recycling can benefit your community, the economy, and the environment. Products should only be recycled if they cannot be reduced or reused. EPA promotes the waste management hierarchy, which ranks various waste management strategies from most to least environmentally preferred. The hierarchy prioritizes source reduction and the reuse of waste materials over recycling. For example, […]

It is essential medical practices have a clear understanding of their daily finances to support their ability to provide quality care to patients. In this method, you account for all of your expenses the moment you receive a bill for them. You’ll also account for any receivables from your patients the moment you bill them […]

We started our journey by understanding the fundamentals of Fathom Smart Reporting and how it integrates seamlessly with QuickBooks Online Advanced. We explored how to access Fathom and navigate its user-friendly interface. We then delved into the different types of reports and dashboards available, such as financial reports, KPI dashboards, trend analysis, and benchmarking. By […]

You can choose to import classes during the import process, and you can also import classes for companies that are already present in the platform. You then have flexibility to re-order and re-classify accounts, as well as create custom sub-headings and account groupings for reporting purposes. If you have multiple entities, you can also copy […]

Having a pro do the work helps ensure financial data precision and accuracy, which can help prevent costly mistakes, potential legal and tax issues, and client dissatisfaction. You must track billable hours accurately to avoid underbilling clients and losing revenue. For example, a lawyer might forget to track time spent on a phone call with […]

An asset is a resource that is owned or controlled by the company to be used for future benefits. Some assets are tangible like cash while others are theoretical or intangible like goodwill or copyrights. The major and often largest value assets of most companies are that company’s machinery, buildings, and property. Accountingo.org aims to […]

Businesses that take a proactive approach to forecasting, cost control, and diversifying revenue streams will be better positioned to weather financial difficulties and achieve long-term success. Without payroll sufficient funds, companies cannot invest in new products, marketing campaigns, or expansion plans. This lack of investment can result in lost market share and stagnant growth. # […]