Category: Bookkeeping

Factoring arrangements are often even more liberal than bank lines of credit, advancing between 75% to 90% of invoiced values, making them highly attractive and quick to arrange. The advance rate can be thought of as a “loan-to-value” and is usually expressed in percentage terms, such as 75 to 90 percent of the total invoice […]

Applying the net profit formula, you subtract the two, giving you the bottom line figure of $16,571,000. Profit is a key measure of business success, but not all profit metrics tell the same story. Gross profit is the revenue remaining after deducting the cost of goods sold, while net profit is the final profit after […]

Get insights from one central dashboard so you can easily comprehend the financial health of your realty business and make strategic decisions. The reconciliation process ensures that the bank account balance in your real estate accounting system is the same as what the bank shows. Each time a transaction occurs, the income or expense is […]

Amortization is the reduction in the carrying value of the balance because a loan is an intangible item. The method used to calculate depreciation can depend on various factors, including the nature of the asset, the length of its useful life, and the company’s accounting policies. This is typically done using the straight-line method, which […]

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The simplest (non-accelerated) calculation method is straight-line, an equal amount over each year of useful life. The two common ways to calculate accelerated depreciation are to accelerate the depreciation by 150% or by 200%. Under the 150% method, an asset costing $10,000 with a useful life of 10 years would be fully depreciated in 6.67 […]

Operating expense refer to routine costs incurred to maintain business operations and generate revenue. Under cash accounting, the expense is only recorded when the actual cash has been paid. An expense refers to the cost incurred by a business in the process of generating revenue. It represents an outflow of cash or cash equivalents to […]

Similar to angel number 919 and angel number 999, this number brings a power of motivation and positivity to your life. The most common meaning behind angel number 0909 is a sign from your angels that you are protected. Your guardian angels are constantly watching over you and guiding you through life but you must […]

Profits from new items are generated when marginal revenue exceeds marginal cost. When production and sales are continued until marginal revenue equals marginal cost, the company experiences the best results. After that point, the cost of producing an additional unit will exceed the revenue generated. Marginal revenue curve and marginal cost curve This is because, […]

At this point, the production level is too expensive, and companies usually pivot with a new strategy or stop selling a specific product. When the line for MR intersects with the line for marginal costs, economists consider this the moment of maximized profit. To showcase how easy it is to use the MR formula, let’s […]