Financial Ratios

Financial Ratios Activity Ratios are used to measure how efficiently a company utilizes its assets. These ratios provide an idea of the overall operational performance of a company. Asset Turnover – measures how efficiently a company uses its total assets to generate revenues. The formula to calculate this ratio is simply net revenues divided by […]

Bookkeeper vs CPA

What is the difference between a Bookkeeper and a CPA? These individuals support your business in different stages of the financial cycle. Bookkeeping records financial data by creating invoices, entering bill information, completing payroll, and making sure all banking transactions are entered. Many bookkeepers also make adjusting entries as needed and prepare the financial statements. […]

The Importance of Monthly Bank Reconciliations

Proper reconciliation of bank statements is vital for any business. Almost all of your business transactions go through your bank account; every bill you pay, every bit of revenue you receive. The reasons for completing this very important step are: Identify errors – the potential exists for human error. If companies fail to reconcile their bank […]

Debits and Credits

Over 500 years ago an Italian monk created double-entry bookkeeping which is used by all accounting professionals today. The words, debit and credit, are very similar to the words that monk used. In accounting, debit means left and credit means right; referring to the different sides of an account. Every transaction has a debit side […]