Receivables turnover ratio definition, explanation, formula, example and interpretation

This is usually calculated as the average between a company’s starting accounts receivable balance and ending accounts receivable balance. The accounts receivable turnover ratio calculates how effectively a company collects accounts receivable (the money a customer owes the company). Another name for accounts receivable turnover ratio is debtors turnover ratio. In other words, the company […]

CPA Exam Cost Explained in 2024 Plus 3 Hidden Fees

This analysis is only an estimate but helps determine if an investment makes sense for your business. When a CPA prepares your tax return, they’re less likely to make those costly mistakes in the first place. And if you do make a mistake, a CPA can deal with the IRS for you. Although it may […]

Pet Dental Insurance: Protecting Your Pet’s Oral Health

Sometimes, when invoicing for unclear and and undetermined consulting services, it pays dividends to showcase examples or samples of work performed for that specific client. Provide tangible reminders and justification for invoiced services. If utilizing a reputable invoicing system like Freshbooks or Honeybook to create and manage your invoices, proudly display the logo and name. […]

7 Construction Billing Methods & Best Practices

Time and materialsTime and materials billing bases the contract price on an hourly or daily labor rate plus the cost of materials used. Under this method, you’ll generally need to apply a standard markup for both the labor and materials/equipment components to account for overhead costs and build in a profit percentage. Cost plusCost plus […]

A Guide to Bookkeeping: Skills, Salaries, and Careers

Make sure that you consider that certain times will be busier than others and that your cash flow situation will fluctuate. You need to budget for these uncertainties and create a cushion to ensure you can always cover your expenses. You should consult your own professional advisors for advice directly relating to your business or […]