This account should show the dollar amount of cash investments as well as the value of property donated to the company. A shareholder who contributes $10,000 in cash, a computer worth $2,000, and software worth $400 would have a capital account showing a total investment of $12,400. S corporation accounting…
When retained earnings (RE) are positive, they increase the organization’s equity. That equity may then be reinvested back into the business to fuel its future growth. In the United States, privately held companies are not required to follow GAAP, but many elect to do so voluntarily. However, publicly traded companies…
The concept, outlined in the Incoterms list by the International Chamber of Commerce, streamlines shipping contracts and facilitates trade negotiations. FOB offers flexibility, cost savings, and clear allocation of responsibilities. FOB (Free On Board) means the seller’s responsibilities end once the goods reach the ship’s rail, so the buyer takes…
Before working in marketing, she completed her Master of Journalism degree at Toronto Metropolitan University (f.k.a. Ryerson University) and worked as an arts journalist in Toronto. She was a content writer for tech companies in the retail and workforce management sectors before joining Mesh in 2022. Finance departments at companies…
Clearly, it is crucial for a company to receive payment for goods or services rendered in a timely manner. It enables the company to maintain a level of liquidity, which allows it to pay for immediate expenses and to get a general idea of when it may be capable of…
This could mean providing quarterly training on best practices, meeting with your staff each cycle to find their pain points, or equipping them with the proper accounting tools. Completing the accounting cycle can be time-consuming, especially if you don’t feel organized. Here are some tips to help streamline the bookkeeping…