Leases are an integral part of modern business operations—offering access to property, equipment, or vehicles without upfront ownership costs. For accounting professionals, correctly identifying, classifying, and recording leases is critical to ensure accurate financial reporting and compliance with standards like IFRS 16 and ASC 842. In this guide, we break down everything you need to…
Tag: accounting
The Importance of Tracking Your Spending
Introduction In today’s fast-paced world, managing your finances effectively can be a challenging task. One of the most crucial steps in achieving financial stability is tracking your spending. By understanding where your money goes each month, you can make informed decisions, identify areas for improvement, and create a budget that works for you. This blog…
How to Use Debt Management Ratios for Business
Introduction: You realize that your business needs to expand to meet clients’ demands or decide to benefit from available opportunities. But your funds do not match your need; what do you do? You borrow, debt becomes part of your business financing. Your financing structure becomes capital and external funds (debt). Wait, debt should not be…
How to understand Liquidity Ratios
Introduction: In accounting and finance, a liquid asset means how easily an asset can be converted into cash without losing its original value. Therefore, if we look at the financial statements, we will review the balance sheet. In the balance sheet, a section of assets orders the account groups in order of liquidity. In this…
How to analyze your business
Understanding how financial ratios tell the story This site contains affiliate links to products and services. We may receive a commission for purchases made through these links. Introduction: Owning a business is more than buying and selling, more than trying to sell services to clients. You must understand every aspect of the business. Every year,…
Why Managerial Accounting is Important for Managers
Managers must understand the terms and concepts behind managerial accounting for planning, directing and better decision making.
How to use breakeven for analysis and decision-making.
Breakeven analysis shows managers how much revenues needs to accomplish profits.
Creating Account Receivable Subsidiary and Aging
Using Microsoft Excel / Google Sheets Do you have credit sales? Do you feel cumbersome keeping track of due dates and aging accounts receivable? Would you like to have your clients on a worksheet easy to maintain? The answers to these and other questions can be answered with an Account Receivable Subsidiary with an Aging….
How to use the count() function in Google Sheets
The Different Counts Functions If you are familiar to Google Sheets and Microsoft Excel, you might have worked with functions. Most of us, have used several functions and typically we keep the ones that work for us. In this blog, I will show you six types of counts functions that you can use to automate…
How to create a LIFO spreadsheet
Using Google Sheets Last in, First out methodology The LIFO methodology assumes that items bought last will be sold first. LIFO holds true when inventory are kept in stacks; thus, the first one sold should be the last one acquired. Using this method, causes that last prices become your cost of goods sold, and older…