It is calculated by taking the difference between the present value of cash inflows and present value of cash outflows over a period of time. The full calculation of the present value is equal to the present value of all 60 future cash flows, minus the $1 million investment. The calculation could be more complicated […]
Bookkeepers often allow you to choose different service levels depending on your budget. That means you can start out with basic bookkeeping at a modest cost and ladder up to more advanced services as your business grows. Professional bookkeepers also provide other services, like helping with financial reports (profit-and-loss, balance sheet, cash flow report), and […]
It is a term commonly used in the police code to describe a system or process of issuing alerts or requests for assistance in locating suspects or vehicles involved in criminal activities. The purpose of an APB is to notify law enforcement officers across different jurisdictions to be on the lookout for specific individuals or […]
This concept is especially helpful to management in calculating the breakeven point for a department or a product line. Management uses this metric to understand what price they are able to charge for a product without losing money as production increases and scale continues. It also helps management understand which products and operations are profitable […]
It is essentially a way to determine whether an investment is likely to be profitable or not by comparing the present value of the expected cash inflows to the present value of the expected cash outflows. If the net present value is positive, the investment is considered to be potentially profitable, while a negative NPV […]
They work in areas like insurance claims, financial disputes, and criminal investigations, bringing a specialized skill set that requires certification. Accountants may contribute to similar tasks but usually lack the training or credentials for in-depth forensic investigations. While the outlay can add up, many professionals find the long-term earnings and broader opportunities outweigh the upfront […]
Once you have a list of bookkeeping names, seek opinion from friends, family or other people. A fresh perspective can help you decide which name resonates best. A name like “Xtraordinary Bookkeepers” might sound unique but could confuse clients trying to remember it. Certifications are a difference maker when clients choose a bookkeeping service. The […]
The concept is a key element of breakeven analysis, which is used to project profit levels for various amounts of sales. When it splits its costs into variable costs and fixed costs, your business can calculate its breakeven point in units or dollars. At breakeven, variable and fixed costs are covered by the sales price, […]
Social scams (or social engineering) are designed to trick someone into releasing sensitive information. Social scammers look for access to company information like financial data, intellectual property, personnel records, customer databases and personal or financial information that can be used to steal people’s identities. Unlike phishing, these scams can be highly personalized, and often involve […]
When the credit memo is saved the expense is posted and the credit memo is held in a/r for that customer. When that customer is invoiced at some later date, the credit memo can be applied to reduce the amount due. In the above example, if the general ledger cash account does not show a […]