Report: Cash Flow Problems Affect Nearly 20% of Construction Contractors

This situation is different in construction than it is in most businesses. To improve cash flow, you can hire subcontractors, which often are paid every four weeks. This should only be done in special situations, however, as you’ll get better results from permanent, full-time employees. Managing Cashflow in Construction Projects Coming up with other sources of …

Update on State Cannabis Taxation

Ad valorem systems are also susceptible to tax avoidance schemes, where consumers can get “free” marijuana if they buy a T-shirt, pay a cover fee to enter an establishment, or donate a certain amount. They can also result in tax cuts for discounts unrelated to externalities, like standard commercial quantity and employee discounts. Tax cannabis …

Horizontal Analysis: What It Is vs Vertical Analysis

The amount and percentage differences for each line are listed in the final two columns, respectively. The two examples below show how to do horizontal analysis using Google Sheets, but you can easily do the same in Excel. The first example is based on a balance sheet, and the second is on an income statement. …

Is Interest Payable a Current Liability? Explanation, Example, and Entries

Higgins Woodwork Company borrowed $50,000 on January 4 to build a new industrial facility. In that case, it shows that a corporation is defaulting on its debt commitments, and this amount may be a critical aspect of financial statement analysis. The Note Payable account https://www.simple-accounting.org/ is then reduced to zero and paid out in cash. …

Solvency Ratios vs Liquidity Ratios Explained

This was all about the solvency ratios that determine the solvency of a business organisation by measuring its ability to pay long term debt obligations. It will help the students in developing a good knowledge of the concept of solvency ratios. This means that they are able to close out their long-term debt obligations when …

What is a pay period? Examples and guide

Stay compliant, collect employee data, and streamline tax filing – all while putting time back in your day with our automated payroll software. With the assurance of an error-free workflow, you can get back to what matters most – your people. Learn how our modern solutions get you out of the tactical and back to …

What is accounts receivable?

Investors and lenders often review a company’s accounts receivable ratio to determine how likely it is that customers will pay their balances. It’s important to note that your business can have a high number of sales but not enough cash flow because of uncollected receivables. Uncollected accounts receivable can hurt your business by reducing your …

Contribution Margin Overview, Guide, Fixed Costs, Variable Costs

Now, it is essential to divide the cost of manufacturing your products between fixed and variable costs. A contribution margin ratio of 40% means that 40% of the revenue earned by Company X is available for the recovery of fixed costs and to contribute to profit. For example, it can help a company determine whether …

A Small Business Guide to Reversing Entries

These three-year, full-time, paid roles help participants build their skills or switch to a new career. That said, having a bachelor’s or master’s degree can often create more job opportunities, make you a more competitive candidate in the cybersecurity job market, or help you advance in your career. Some degree programs, like the Online Master …

BambooHR Glossary: Gross Income

Content Individual Gross Income Example Why Understanding Gross Income Is Important Calculating gross income Relax—run payroll in just 3 easy steps! What is federal gross income? No one offers more ways to get tax help than H&R Block. Let’s say your business also had another $75,000 in expenditures. Subtract these from the gross revenue to …