You’ll be able to provide a snapshot of the organization’s financial health so that stakeholders can assess its performance and decide its future direction. Determine how much fundraising income you’ll need to cover overhead costs and create a strategy for cost-cutting measures to help maximize the nonprofit’s resources. The cash-basis method is usually simpler to…

A lower WACC indicates more efficient financing, enhancing profitability and competitiveness. In contrast, the cost of equity represents the expected return required by investors for taking on the risk of holding equity. This is more complex to calculate and often relies on financial models like the Capital Asset Pricing Model (CAPM). How Much Does It…

Yes, it takes time, but good documentation makes everything else easier—from grant reporting to tax preparation. Likewise, keep a tax deduction cheat sheet handy for quick reference during donor inquiries. Effective board oversight requires a delicate balance in financial communication. Board members bring varying financial expertise, yet all need to understand the organization’s financial position…

As a CPA firm that specializes in working with not-for-profits, we also understand the unique accounting needs and financial challenges faced by these organizations. Intuit QuickBooks offers several plans, ranging from $35 to $235 per month ($17.50 to $117.50 per month for the first three months during the current promotion). Plan differences revolve around the…

It calculates payroll deductions for the most common pay periods, such as weekly or biweekly, based on exact salary figures. As the employer, you are required to match the employee withholding for each employee according to the individual gross wage amounts. If an employee’s withholding allowances increase, they may submit a new Form W-4 to…

The community has since grown exponentially with many developers working on Bitcoin. Bitcoin payments are easier to make than debit or credit card purchases, and can be received without a merchant account. Payments are made from a wallet application, either on your computer or smartphone, by entering the recipient’s address, the payment amount, and pressing…

Consider adopting a consistent schedule for bookkeeping tasks, bookkeeping basics for entrepreneurs such as weekly or monthly reviews. This habit will help you stay on top of your finances and identify any discrepancies early on. Additionally, maintaining a separate bank account for business transactions can simplify record-keeping and make it easier to manage cash flow.…

The asset turnover ratio is calculated by dividing net sales or revenue by the average total assets. The asset turnover ratio measures how effectively a company uses its assets to generate revenues or sales. The ratio compares the dollar amount of sales or revenues to the company’s total assets to measure the efficiency of the…

Let’s answer some frequently asked questions related to household income. So if you’re interested in learning more about gross income, please keep reading. Yes, your annual salary generally consists of the fixed base salary plus bonuses and commissions offered by your employer. Both the base salary rate and any additional bonuses should be specified in…

Most small businesses have more basic accounting needs, which means cash basis is often the right fit. Cost accounting focuses on a detailed break-up of costs for effective cost control. Managerial accounting is very important in the decision-making process. Trial Balance: Definition, Purpose, Types and Examples Explained The AI in Accounting formation of the institute…