This requires the use of double-entry accounting, which means that every financial transaction must have an equal and opposite effect in at least two other different accounts. Both Notes Payable and Accounts Payable are liabilities recorded on

They contact several firms, eventually getting a meeting to present their business plan. Otherwise known as bootstrapping, self-funding lets you leverage your own financial resources to support your business. Self-funding can come in the form

This creates clarity and helps distinguish between the two at a glance. QuickBooks Online offers more flexible reporting options than QuickBooks Solopreneur. You can generate a wide range of reports in QuickBooks Online, including balance

Variable Costs per Unit- Variable costs are costs directly tied to the production of a product, like labor hired to make that product, or materials used. Variable costs often fluctuate, and are typically a company’s

Imagine having a large stack of receipts and invoices from different shops, suppliers, and customers. All the information you need is there, but it’s useless when it’s all messed up like that! Journal entries help

On rare occasions, the bank will have made an error instead, in which case the bank corrects its records and the company’s book balance is not adjusted. By comparing book and bank balance and spotting

In fact, it would be almost strange for no variance to exist—we all know that predicting revenue and expenses with absolute certainty is near impossible. This can be a tricky concept to understand, due to

By taking out debt and using personal income to cover interest charges, households may also use leverage. Financial leverage is the concept of using borrowed capital as a funding source. Leverage is often used when

The amount of short-term debt— compared to long-term debt—is important when analyzing a company's financial health. If you want to control your current ratio, you’ll want to control each of these factors. Consider a business

The tax is applied to wages, salaries, and other compensation within certain thresholds, which are adjusted periodically. The distinct components of FICA, namely Social Security and Medicare, each have specific rates and caps that determine