Archives par catégorie: Bookkeeping

What is Box 12a on W2? Explained for Easy Tax Filing

Also do not correct any Additional Medicare Tax withheld on the repaid wages (reported with Medicare tax withheld in box 6) on Form W-2c. File the “X” return that is appropriate for the return on which the wages or compensation was originally reported (Forms 941-X, 943-X, 944-X, or CT-1X). Correct the social security and Medicare […]

How to Calculate Current Ratio: 7 Steps with Pictures

Taking the time to monitor the current ratio can give some very valuable insights into a company’s ability to manage liquidity and ensure better financial stability. This formula compares a company’s current assets to its current liabilities, giving a snapshot of its short-term liquidity. For businesses, it highlights operational efficiency and effective cash flow management. […]

What Is the Contribution Margin Ratio Formula and How Is It Used?

Thus, Dobson Books Company suffered a loss of $30,000 during the previous year. The contribution margin ratio refers to the difference between your sales and variable expenses expressed as a percentage. That is, this ratio calculates the percentage of the contribution margin compared to your company’s net sales. Fixed costs stay the same regardless of […]

Current Ratio Explained With Formula and Examples

A current ratio of less than 1.00 may seem alarming, but a single ratio doesn’t always offer a complete picture of a company’s finances. Standard No. 10 issued by SOCPA (Saudi Organization for Chartered and Professional Accountants) governs the accounting treatment of fixed assets. It includes capitalization criteria, depreciation methods and useful life, impairment recognition, […]

Consolidation Accounting 101: Exploring its Rules and Types

In consolidated financial statements, the results of the entities subject to consolidation will be merged together making these entities appear like one single entity. In reality, these entities operate separately and are different companies, however, for the purpose of consolidation, there is no separate reporting prepared for each of the entities on an individual basis. […]

Economic Order Quantity Calculator EOC Calculator

The EOQ Calculator assists companies in optimizing order quantity while reducing storage costs. You input demand, order cost, and holding cost to calculate the optimal number of units to order. EOQ calculations should be updated periodically to account for changes in demand, costs, and market conditions. As these factors fluctuate, it is crucial to reevaluate the EOQ […]

Nonprofit Audit Guide©

With the right amount of information and preparation, you can come out of a nonprofit financial audit successfully. Non-profits often have complex funding arrangements involving multiple donors, grants, and sponsorships. Auditors must carefully assess these arrangements to ensure compliance and proper reporting. Select the Right Auditor It simplifies the preparation process and supports the generation […]