• Bookkeeping

First, this isn’t the same as an IRS audit–it’s not an “I’m being audited! Regular audits will keep your Board of Directors and employees accountable for their decisions. One or a group of IRS agents show up to your organization and begin to file through your financial paperwork. Learn about Yellow Book Audits, when they’re […]

As nonprofit professionals, we know and understand that paying staff, keeping the lights on, and buying office supplies are critical components of serving our clients. Without staff, without a building, and without electricity, our nonprofits wouldn’t really exist. The minimum wage usually applies to nonprofit organizations as well as to for-profit companies. The federal minimum […]

This number is important because it gives an overview of the company’s operation success before any other costs or gains that aren’t part of the main business. A traditional income statement is a way to see how a company is doing with its money. It’s like a report card that shows if a company made […]

This means that investors own 66.6 cents of every dollar of company assets while creditors only own 33.3 cents on the dollar. The debt to equity ratio is a financial, liquidity ratio that compares a company’s total debt to total equity. The debt to equity ratio shows the percentage of company financing that comes from […]

Similar to fixed rents, the minimum rent is also included in the straight-line rent calculation for operating leases under ASC 840 and the calculation of the lease liability under ASC 842. When the actual rent amount is paid, any variance from the minimum threshold used in the initial valuation is recorded directly to rent or […]

For example, a business pays $12,000 in advance for one year of property insurance. For the tenant, prepaid rent is an asset, as it represents a service that will be received in the future. For the landlord, the advance payment received is a liability, specifically a type of unearned revenue, because it represents a service […]

As Blur Guitar, Inc. buys inventory and makes sales throughout the year, it records all of the transactions as journal entries in the general journal. At the end of the year or the end of a reporting period, these transactions are taken from the general journal and posted to individual ledgers. Since there are so […]

In this example, any form of payroll and sales taxes will be disregarded to simplify recording of transactions. Below are the journal entries for each transaction during March 2023 and how they are recorded in the general journal. Recording transactions can be time consuming that’s why using technologies such as accounting software and POS machines […]

The EOQ formula can be paired with the reorder point formula, which helps a business identify when it should order more inventory. Using these calculations together can help a business avoid running out of stock for its products without carrying more inventory than it needs to. You probably noticed that some of the variables require […]

It can be difficult to forecast the exact optimal number of stock to have on hand at your business and may result in cautious calculations that cause you to order smaller amounts. This under-ordering may cause inventory shortages, which can lose your business money. This concept arises from the fact that the cost remains under […]

Detailed action plans, like a well-written recipe, provide clear instructions for navigating the recovery process. A business continuity plan should outline the procedures an organization must follow during a disruptive event. Leveraging a platform like ClearPoint Strategy allows you to document, track, and manage these procedures effectively. A business continuity plan (BCP), often created using […]

Included on this page, find the steps to writing a business continuity plan and a discussion of the key components in a plan. You’ll also find a business continuity plan quick-start template and a disruptive incident quick-reference card template for print or mobile, and an expert disaster preparation checklist. The frequency of testing depends on your […]

We’ll say you have $10,000 in a savings account is your small business accounting for inflation earning 5% interest per year, withannual compounding. We’ll assume you intend to leave the investment untouched for 20 years. At year five the gap in return is more than $2,500 while at year ten it is over $15,000 on […]

A daily compound interest calculator calculates what you’ll earn (or be charged) every day. With monthly, you’ll earn (or be charged) interest each month, and with annual, you’ll earn (or be charged) every year (an annual percentage). Due to the way the compound interest formula works, the more frequently you compound, the more interest earned […]

To calculate the average accounts receivable, simply add the beginning and ending balances over a certain period—often a month or a year—and then divide by two. This gives you the average amount of receivables during that period, allowing for a fair representation over time, rather than relying on a potentially fluctuating end-of-period number. They can […]