ADP RUN articles

Calculating the current ratio at just one point in time could indicate that the company can’t cover all of its current debts, but it doesn’t necessarily mean that it won’t be able to when the payments are due. A ratio under 1.00 indicates that the company’s debts due in a year or less are greater than its assets—cash or other short-term assets expected to be converted to cash within a year or less. A current ratio of less than 1.00 may seem alarming, although different […]

A break-even analysis can help you see where you need to make adjustments with your pricing or expenses. If your business’s revenue is below the break-even point, you have a loss. Sign up for Shopify’s free trial to access all of the tools and services you need to start, run, and grow your business. To make sure you don’t miss any costs, think through your entire operations from start to finish. If you think through your ecommerce packaging experience, you might remember that […]

Generally speaking, a higher ratio indicates more efficient use of credit and quicker payment collection, while a lower ratio may suggest potential issues with managing customer debt. A higher ratio is generally better as it indicates a company is collecting payment from its customers more efficiently and managing its cash flow more effectively. That’s because it may be due to an inadequate collection process, bad credit policies, or customers that are not financially viable or creditwor […]

For example, if you sell color and black-and-white print ads, you can designate the third numeral of your code to be 1 for color ads and 2 for black and white ads. If you used four-numeral codes, your code for color print ads would be 1210 and your code for black-and-white ads would be 1220. This lets you quickly determine your total print sales and break out how much came from color ads. The simplest way to assign general ledger codes is to start with a numeral, such as 100, assigning each su […]

Cost centers setup with flexible structure contain unlimited levels. Unlimited sub-codes setup, e.g. customers, suppliers, employees, banks, etc.  Create unlimited number of journal types. Simple way to record the journal with a proper control and validation . Ability of recording description per account level and/or per transaction level . Controlling in available work period for transactions insertion or amendment . Setup periodical transactions, then trigger insertion for those transac […]

These entries are made in the order that the transactions occurred. General journals typically contain information about things like cash receipts and payments. In addition, they can also contain inventory balances, purchases and sales. The general journal is used as a primary book of entry for recording all transactions for a business. A specialty journal will only record the business transactions that are related to that particular journal itself.
Then, account balances are calculated and tr […]