A low DSI reflects fast sales of inventory stocks and thus would minimize handling costs, as well as increase cash flow. The days sales in inventory calculation, also called days inventory outstanding or simply days in inventory, measures the number ... Read more
Your balance sheet will be separated into two main sections, cash and cash equivalent assets on the one side, and liabilities and equity on the other. Documenting the financial details of your business will give you a thorough understanding of availa... Read more
This means that you credit the cash account, but you debit your Prepaid Expenses account. A customer deposit is money from a customer to a company before the company earns it. It is a simple cycle whereby when the company receives cash from a custome... Read more
In addition, the new bill allows the deduction of business expenses paid for with forgiven Paycheck Protection Program loans. Government grants are taxable income to the recipient unless the tax law makes an exception.... Read more
For example, an auto manufacturer's production facility would be labeled a noncurrent asset. The portion of ExxonMobil's balance sheet pictured below displays where you may find current and noncurrent assets.... Read more
To access past issues of the Avoidance Action Report, click here. To learn more about ASK LLP’s Avoidance Action experience, click here. Section 507 sets forth 10 categories of unsecured claims which Congress has, for public policy reasons, giv... Read more
One should check the appropriate tax regulations and generate a complete list of such required accounts. Second, there’s fixed assets, which are more difficult to liquidate, including office equipment, vehicles, heavy machinery, and land. Examp... Read more
An invoice is a list of items for which a customer or company has to make payments to its suppliers, service providers, or vendors. The accounts payable department receives invoices from the suppliers or vendors and assesses it before processing for ... Read more
If you use tools like Klaviyo or AdEspresso to manage your email and Facebook campaigns, they count as “ordinary and necessary” marketing expenses. Sometimes customers or clients simply won’t pay for the product or service you alrea... Read more
Typically, you close the books at the end of a given period - usually the month. But credit card statements are often issued some time after the end of each month. Which pushes the whole reconciliation process back, and forces you to wait to close th... Read more
