Cash flow is a concept in accounting that refers to the spending or receiving of cash by an organization. For a given period, cash flow is calculated by ending cash balance less starting cash balance. It is important not to confuse cash flow with earnings, as cash flow is related to solvency, not profitability.
Operating ratios are a class of ratios that are meant to analyze how well a company is using their assets. Specifically, these ratios show how well a company utilizes its assets to create revenue.
“Gains and Losses” – this comes from investment revenue from a business, instead of regular operations. If they sell a piece of land at a profit, for example, that would be a “Gain”.
Since the accountancy profession is only as good as the quality of service provided by its members, regulations and ethical guidelines are essential to having effective accountants.
Liabilities are the expenses a company must pay in the future – and are subtracted from a company’s assets to find “Shareholder Equity”. Liabilities can be accounts payable (bills they have but haven’t paid yet), outstanding contacts (services they agreed to provide but have not yet completed), pension obligations, or any outstanding debt.
“Assets” are things a company owns that have value. This can be equipment, patents, cash in the bank, accounts receivables, property, or anything else of value that could be theoretically sold, if the company went bankrupt.
Payroll is run weekly, bi-weekly, monthly, or even semi-monthly, so for each pay cycle, taxes need to be calculated and reported. All tax payments need to be calculated for each pay cycle, then filed once per quarter. Therefore, Payroll Accounting is an involved process that properly accounts for all taxe
A company’s accounting department must meet several criteria that are used to recognize revenue when a sale transaction occurs, and when expenses are recorded. This recognition is essential for meeting the Generally Accepted Accounting Principles (GAAP).
GAAP – the Generally Accepted Accounting Practices. These are a set of a standard means of doing financial reporting and bookkeeping. This helps analysts and auditors can compare apples-to-apples financial data from one year to another, and even between organizations.
Auditing, Wealth Management, Forensic Accounting, Payroll, and more! There has never been a bigger demand for accountants in EVERY type of business. What certifications will you need to launch your career?