Working Capital: Formula, Components, and Limitations

Current liabilities encompass all debts a company owes or will owe within the next 12 months. The overarching goal of working capital is to understand whether a company can cover all of these debts with the short-term assets it already has on hand. Working capital is...

Virtual Accountant: Your Guide To Hiring The Right One

It’s not a bad idea to look for a virtual team that has both levels of staff so that you can have everything under one roof. The cost of hiring them varies depending on the services you require, the level of expertise, and the accountant’s location. In...

How to Determine a Tangible Asset’s Useful Life?

The general rules for interpreting the relationship between annual depreciation expense and useful life assumption are straightforward. However, the implied useful life can be determined by rearranging the formula for calculating depreciation expense. These standards...

4 3 Accounting for the issuance of common stock

The number of shares an investor owns is compared to the total number of shares outstanding to determine their ownership percentage. For example, if an investor owns 1,000 shares out of 100,000 shares outstanding, they have a 1% ownership interest in the corporation....

How To Scale Your Small Business in 6 Steps

To help you achieve your growth goals, creating and executing a sales and marketing plan to boost your revenues is crucial. Your plan may include new marketing initiatives, stepped-up advertising spending or hiring new sales representatives. As a business, we need to...