Category: Bookkeeping

Recording provisions in accounting accurately reflect anticipated future expenses and potential liabilities. With a structured process, businesses can estimate the required funds, record them as expenses in the appropriate accounting period, and update the corresponding accounts. Provisions in Accounting are an amount set aside to cover a probable future expense, or reduction in the value…

Recording provisions in accounting accurately reflect anticipated future expenses and potential liabilities. With a structured process, businesses can estimate the required funds, record them as expenses in the appropriate accounting period, and update the corresponding accounts. Provisions in Accounting are an amount set aside to cover a probable future expense, or reduction in the value…

This approach adheres to the matching principle, stipulating that the company must recognize revenues and expenditures in the same accounting period. Fundamental provision accounting principles and standards are the foundation for more detailed and extensive accounting laws. Here are a few key provisions accounting regulations companies should follow when publishing financial data. A provision is…

This approach adheres to the matching principle, stipulating that the company must recognize revenues and expenditures in the same accounting period. Fundamental provision accounting principles and standards are the foundation for more detailed and extensive accounting laws. Here are a few key provisions accounting regulations companies should follow when publishing financial data. A provision is…

Below, we’ll cover everything you need to know about break-even point to calculate your own (with a simple formula) and use it to guide your business toward smarter decisions. Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he…

Whether you’re a seasoned investor or just starting out, understanding the ins and outs of managing your real estate finances is crucial for success. This guide will provide you with a comprehensive overview of real estate bookkeeping, equipping you with the knowledge and resources to take control of your financial future. Additionally, fostering a culture…

CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path. For example, imagine that a business’s…

Start by listing all your active contracts that still have revenue to be recognized, along with the annual contract value (ACV) of each. Frankly, there isn’t a one-size-fits-all revenue backlog calculation or formula. Generally, you calculate the revenue backlog for each ongoing contract by subtracting the recognized revenue from the total contract value. Although revenue…

Business drivers can be used in many ways to help a company stay competitive and achieve its desired results. They can be used to identify and respond to changes in the marketplace, formulate strategies, and make informed decisions. The quest for long-term business value starts with a clear understanding of the variables that actually create…

However, when a company divests an asset, the transaction is considered “cash in” for calculating cash from investing. For more on how cash flow from investing activities is calculated, please see Cash Flow From Investing Activities. Cash and cash equivalents are consolidated into a single line item on a company’s balance sheet. It reports the value…