What is marginal profit? Marginal profit is a concept in microeconomics that refers to the increase in a company’s profit from selling one additional unit. It is expressed as the difference between marginal revenue (the increase in revenue from one additional unit) and marginal cost (the increase in the cost of producing one additional unit)….
How does cross collateralizing a loan work When you borrow money, the lender will usually require some collateral. This allows them to recoup their losses if they cross default on the loan. Cross collateralization is when you use more than one asset as collateral for a loan. For example, if you have a home equity…
Bank reconciliations may not be the most exciting topic, but they are essential for accounting. In essence, bank reconciliation is the process of comparing your company’s bookkeeping records with the actual transactions that have taken place in your bank account. This helps to ensure that there are no discrepancies between the two systems and that…
What is an Accountant? Definition: An accountant is a professional who maintains and examines business accounts. For instance, they record transactions, revenue, and expenses in a restaurant. Expanded Definition: Accountants handle financial records. Their responsibilities encompass various aspects including: Types of Accounting Forensic Accounting Forensic accounting is a specialized branch of accounting that combines the…
What is tax day? Tax day is when individual federal income tax returns are due to be submitted to the federal government in the United States. It usually falls on April 15th but may be extended in the event of a weekend or public holiday. How do you know if you need to file a…
What are debits and credits? In accounting, debits and credits are ways of recording financial transactions. Transactions are recorded as either a debit or a credit, depending on what is happening in the transaction. What does debit mean? Debits are typically used to record assets, while credits are typically used to record liabilities. For example,…
Why Small Businesses Need an Accountant Running your own small business can be challenging, not least because of the complex financial management tasks that come with it. This is where a small business accountant steps in and becomes your financial partner. They turn those puzzling numbers into meaningful insights, benefiting you and your business in…
Bookkeepers are in charge of keeping track of all the financial transactions that happen within a company, their job description is to organize and transfer information from one location to another, and they also keep the business and bank reconciliation records for taxes. If you are managing a company, then it is vital that you…
What is small business bookkeeping? Small business bookkeeping is the financial activities involved in processing, measuring, and communicating a business’s finances. These activities include the following: Bookkeeping can help streamline business practices and ensure accuracy in decision-making by keeping track of expenses and understanding the financial standing of a business. There are various methods and…
Everything You Needed to Know About Bookkeeper Services Bookkeeping is the process of recording and summarizing the transactions and events in a business. Generally, this is used for all transactions and events in a business to keep track of its assets, liabilities, income, expenses, and owner’s equity. Bookkeeping is an important part of any business,…
