What are some examples of financing activities?
If the result is a positive number, this means that your business has increased its cash reserves and, therefore, expanded its overall assets. For example, a negative balance can result from issuing dividends to shareholders or paying off long-term debt. Analyzing the cash flow statement is extremely valuable because it provides a reconciliation of the […]
Bad Debt Expense Definition and Methods for Estimating
Offer your customers payment terms like Net 30 and Net 15—eventually you’ll run into a customer who either can’t or won’t pay you. When money your customers owe you becomes uncollectible like this, we call that bad debt (or a doubtful debt). Bad debt expense is something that must be recorded and accounted for every […]
Bad Debt Expense Definition and Methods for Estimating
Usually, the longer a receivable is past due, the more likely that it will be uncollectible. That is why the estimated percentage of losses increases as the number of days past due increases. As stated above, they can only be written off against tax capital, or income, but they are limited to a deduction of […]
Best Accounting Software For Psychotherapists 2023 UPDATED Complete Buyer’s Guide
It’s cloud-based accounting software, and it has completely changed the way we do our work. As psychotherapists, Xero has allowed streamlining our services offerings to make them more efficient and profitable. The company has a team of dedicated professionals working hard on providing quality service for their clients, and this team has been in existence […]
Modernize Strategic Financial Planning in Upstream Accounting with a Unified SaaS Platform
This is an area of your finances that can easily get out of control if it’s not monitored. Then the software compares them to your income using totals and colorful charts. One of the great things about using small business accounting software is that it reduces repetitive data entry. Once you fill in the blanks […]