Category: Bookkeeping

For example, auditors may review the authorization process for significant transactions to ensure compliance with policies. A strong control environment, supported by governance practices like board oversight and an active audit committee, enhances report reliability. The results of this assessment guide the audit procedures and the subsequent audit opinion. Thus, a robust audit risk assessment…

This may be the case if the company has sustained long-term losses or if its dividends exceed its profits. On the other hand, when a company generates surplus income, a portion of the long-term shareholders may expect some regular income in the form of dividends as a reward for putting their money into the company.…

Staying informed about employer tax guide updates, tax law changes, and proper withholding practices will help keep payroll systems accurate and efficient in 2025. For 2025, the Social Security tax rate remains at 6.2% for both employers and employees, totaling 12.4%. Wages exceeding this threshold are not subject to Social Security tax. For example, if…

Understanding what makes up the cash flow from investing activities is an important step on the way to performing more accurate, contextual, and valuable cash flow analyses. Calculating cash flow from investing activities is incredibly straightforward. This might include the purchase or sale of securities like stocks and bonds, though it’s more typically related to…

Deposits are typically short-term investments and adjust to current interest rates faster than the rates on fixed-rate loans. ✅ Focuses on variable vs. fixed costs to analyze business profitability.✅ Used primarily for internal decision-making and cost control.✅ Helps companies determine breakeven points and optimize pricing strategies. Looking at your statement regularly helps you stick to…