Petty cash is the operational pocket money for your business – a little sum of cash readily available to cover everyday expenses. It’s the go-to fund for small purchases, like buying office supplies and snacks or covering minor unexpected costs.…

So, a good net profit margin to aim for as a business owner or manager is highly dependent on your specific industry. It’s important to keep an eye on your competitors and compare your net profit margins accordingly. Additionally, it’s…

And by comparing these contras against their corresponding parent accounts, you can better understand the actual value of the assets retained by your business. Because contra asset accounts are used so frequently, what is a contra account it’s worth spending…

Don’t miss the accounting software resources put together by Nav experts. IgniteSpot Accounting boasts a more personalized approach to outsourced accounting services. Its bookkeeping packages include certified virtual bookkeepers and a dedicated accountant for your business. How to choose bookkeeping…

No interest receivable account is used when the note carries compound interest, because in that case the carrying amount of notes receivable is increased by debiting it, as seen above. Notes receivable are financial assets of a business which arise…

Companies will generally disclose what equivalents it includes in the footnotes to the balance sheet. The accounting equation states that the amount of assets must be equal to liabilities plus shareholder or owner equity. The liabilities and shareholders’ equity show…

In the world of accounting, a liability refers to a company’s financial obligations or debts that arise during the course of business operations. These are obligations owed to other entities, which must be fulfilled in the future, usually by transferring…

There are weekly, monthly, quarterly, and annual accounting tasks you need to complete to ensure your business’s success. A certified public accountant (CPA) is a type of professional accountant with more training and experience than a typical accountant. In the…

For example, if you lease a truck valued at $50,000 for 48 months and pay $975 a month, then the value of your lease is $46,800, which is 93.6 percent of $50,000, making it a capital lease. Similarly, if you…

To get the most out of your general ledger (and all other reports), set up the company’s structure properly. Hire an accountant or bookkeeper, or learn how to set up the chart of accounts and classifications for your company’s accounting…