Category: Bookkeeping

How to start an accounting firm Your checklist for starting a CPA firm Thomson Reuters

Talk to people in your network who are also bookkeepers and ask what they are charging. In doing so, you can get a good idea as to the range bookkeepers charge for services. Before we jump into this accounting project, you should get to know your opening equity account. This is a holding account on…


Common stock vs treasury stock definitions, meanings, differences

SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. SmartAsset does not review the ongoing performance of any RIA/IAR, participate in the management of any user’s account by an RIA/IAR or provide advice regarding specific investments. Stocks are analyzed and discussed in many other ways beyond the…


How to Read a Statement of Changes in Stockholders Equity

If a company doesn’t wish to hang on to the shares for future financing, it can choose to retire the shares. While the simple return on equity formula is net income divided by shareholder’s equity, we can break it down further into additional drivers. As you can see in the diagram below, the return on…


3 7 Non-operating income and expenses

The nature of non-operating varies depending on the type of revenue, such as income in the form of interest; dividends are repeating in nature, whilst income in the form of foreign exchange gain is non-recurring. Non-operating is defined as any profit or loss derived from the organization’s operations that are not directly related to the…


Understanding Interest Rates, Inflation, and Bonds

And if we set aside complications like subsidies and loss leaders, that cost is reflected in the price, as well as how much consumers value the item. Bond pricing can be complex, so consider working with a financial advisor. They can help you run the numbers and figure out whether a bond purchase is a…


How Gross Wages Are Calculated

Alternatively, you can calculate your gross income as (1) your monthly salary before taxes or (2) the number of hours you will work in a given month multiplied by your hourly pay rate. The total wages for the year are reported to employees each period on their paystubs. This is typically the largest number on…