It’s crucial to ensure that the deposits are matched with the corresponding invoices and payments, as this will accurately reflect the financial transactions. This can have a significant impact on a small business’s ability to track and manage its cash flow accurately. Not recording all deposits can lead to an imbalance between the actual and […]
How to do a step-by-step bank reconciliation
If everything matches, you know your accounts are balanced and accurate. We recommend reconciling your checking, savings, and credit card accounts every month. Connect QuickBooks to your completed contract method definition bank, credit cards, PayPal, Square, and more1 and we’ll import your transactions for you. When you receive your bank statement or account statement at the […]
Inventory Turnover Ratio Learn How to Calculate Inventory Turnover
For companies with low inventory turnover ratios, the duration between when the inventory is purchased, produced/manufactured into a finished good, and then sold is more prolonged (i.e. requires more time). The inventory turnover ratio is closely tied to the days inventory outstanding (DIO) metric, which measures the number of days needed by a company to […]
Last In, First Out LIFO: The Inventory Cost Method Explained
In contrast, the LIFO inventory valuation method results in a higher COGS so the company can claim a greater expense. The type of inventory that a business holds can influence its choice of FIFO or LIFO. For example, businesses with a beginning inventory of perishable goods will usually choose FIFO, since it’s in their best […]