Accounting

For 60-day terms, meaning their customers can take up to 60 days to pay, a DSO of 63 is not too shabby. The closer the DSO calculation is to the terms that are set and the industry averages, the better. As long as people have been trading goods, they have been using invoices to show outstanding debts. Sending invoices to customers for goods or services is common practice for most businesses, with the exception of retail or restaurants where transactions take place immediately. Additionally, you […]

Here, I’ll gather a list of relevant taxes and strategies, together with revenue projections. There is no agreement on how much a wealth tax, for example, would raise. So I’ll include the range of revenue projections, from conservative skepticism to passionate optimism. For example, since 1982, every Alaskan citizen has received a partial UBI through taxes levied on oil revenues. From the introduction of their partial UBI to the present, Alaska has experienced lower inflation than t […]

A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement. When a person or business pays rent in advance, it is prepaid rent to the tenant and unearned rent to the landlord. How these accounts are treated on the list of financial statements and affect net income depends on whe […]

For instance, if you bought a newly issued share of preferred stock with a par value of $25 and a 5% coupon rate, you’d receive $1.25 per share in dividends per year. Similar to bonds, when you buy preferred stock on the secondary market, the effective interest rate changes depending on market value versus par value. As the par value is often no more than a few pennies, it’s a formality to meet certain states’ legal requirements for securities or to help manage taxes for compa […]

Jaclyn works with her clients to provide a process that meets the needs of each customer and generates a tailored report that is useful to the client and the users of the report. An auditor is responsible for using a mixture of audit and investigative techniques to determine whether the suspicion of fraud is warranted and if so, the effects of the fraud. The scope of forensic audits can be as wide as necessary and can take a significant amount of time and resources. Generally, a successful fore […]

Strong math skills, calculations, data analyzing, spreadsheets, general ledger applications, income tax, cost accounting, fraud prevention, auditing…. If you don’t find these interesting, then the accounting profession may not be for you. Ask yourself if you would feel comfortable spending fifty to seventy hours a week scrutinizing data and calculating numbers. In summary, an accountant will create the financial statements for the company, and the auditor will look the financial sta […]