Categoría: Bookkeeping

For example, suppose one company sells another company $20 million worth of goods or services but only converts them into local currency after doing so. In that case, it could appear that the company sold $20 million worth of goods or services when it only sold $15 million, which makes its financial statements inaccurate. There… Seguir leyendo GAAP Generally Accepted Accounting Principles Business Literacy Institute Financial Intelligence

However, it becomes a problem when these debts convert into bad debts and hinders the progress and financial stability of your business. The key to safeguarding your business from the pitfalls of bad debt lies in effectively managing your debts, as they often occur due to poor financial management. This contra-asset account reduces the loan… Seguir leyendo Bad Debt Expense Definition, Reporting Methods

Some people use the word profits to mean net income before income tax expense, while others use the word profits to mean net income after income tax expense. Gross income is a line item that is sometimes included in a company’s income statement but is not required. They both refer to the amount of residual earnings that… Seguir leyendo Net Income vs Profit: What’s the Difference?

Across the eight specifications, these coefficients provide support for the importance of the information channel but not the transactions costs channel. In the two fixed-effects specifications that include TRACE status as a control, this coefficient is negative and significant. In these regressions, TRACE status continues to have explanatory power for bond issuing yields beyond the… Seguir leyendo Why borrowing costs for nearly everything are surging

Whereas, other comprehensive income consists of all unrealized gains and losses on assets that are not reflected in the income statement. It is a more robust document that often is used by large corporations with investments in multiple countries. Instead investors and creditors must look on the statement of stockholder’s equity, a combined statement of… Seguir leyendo Comprehensive income definition

Previously Ruben was a Director with UBS Investment Bank and also spent time as a management consultant. Ruben has a Computer Science degree from Brandeis University and an MBA from UC Berkeley. Additionally, NLP models like ChatGPT can be used to extract insights from unstructured data, such as customer reviews or social media posts, which… Seguir leyendo KPMG generative AI survey report: Financial services

It would be a little more far-fetched if your new product was baked goods. The key here is to diversify your offerings so that they complement each other. However, it also means putting in additional work, possibly hiring more employees and maybe even getting funding to cover the increased cost. The useful life of many… Seguir leyendo 10 Business Skills Every Professional Needs

The following companies are just a few examples of how AI-infused technology is helping financial institutions make better trades. Since the launch of Open AI’s Chat GPT, the potential of AI to completely reimagine these processes has exploded. At the same time, the timeline for transformation has moved from down the road to around the… Seguir leyendo ChatGPT: how to use AI as a virtual financial adviser

If it is determined a taxing jurisdiction’s PET is attributed to the entity, and therefore within the scope of ASC 740, entities should evaluate the requirements for related current and deferred tax effects recognized within the financial statements. Management should also evaluate whether there are factors that could impact the timing of recognition and measurement… Seguir leyendo Current developments in S corporations

With Wise Business expense cards you can improve petty cash management by providing a better oversight since the transactions are easily trackable on the app. The card offers real-time conversion in multiple currencies without the hefty fees. The company can keep a limit on the value of transactions so that the expenses are capped. That… Seguir leyendo Why Petty Cash Is Important to Small Businesses