An error, or other reporting problem, is material if knowing about it would influence the decisions of an average prudent investor. Thus, materiality is different for each company and $5,000 is not necessarily a threshold for materiality.
Make sure that every one of your managers has a copy and understands it. Learn accounting fundamentals …
The solvency ratio represents the ability of a company to pay it’s long term obligations. This ratio compares your company’s non-cash expenses and net income after taxes to your total liabilities . The cash ratio is different from both the quick and current ratios in that it only takes into account assets that are the easiest to …
First, there is the liability that you could incur if you make any errors that result in additional interest and penalties. As discussed previously, you will need to purchase professional liability insurance to ensure you are covered.
They’re responsible for recording every financial transaction in your general ledger using …
Note that the process differs slightly for hourly and salaried employees. Hourly employees clock in and out, and their pay stubs may vary a bit from pay period to pay period. Salaried employees earn a set wage that doesn’t change from week to week. Payroll is the reason each new hire needs to fill out and submit a W-4 tax form (or …
You can’t run a business these days without an Internet connection, but free Wi-Fi hotspots are not going to cut it. First, free access points are typically not reliable enough for business work. Technology is a powerful thing for small business owners, regardless what type of business they run.
When buying equipment, consider the …
Traditionally invoices are sent through the regular mail, and that’s certainly an option many businesses use today. Others will create and send invoices electronically via email. A purchase order is sent by a customer to a vendor, requesting goods or services.
The invoice tells the buyer how much they owe the seller and sets up payment …