What Is an Accounting Journal?

If you own or manage a company or know someone that does, you know that businesses account for all the expenses made for their upkeep. It is crucial to keep a record of transactions made by them to maintain economic stability. Several unaccounted transactions cause an imbalance in financial statements such as balance sheets, leading…


Debit and Credit

What is a Debit and Credit?

  When it comes to accounting and bookkeeping, Debit and Credit are the two words you shall come across the most often. You can have a better knowledge of the accounting process by learning how debit and credit function. It might even make it easier for you to understand complex accounting concepts.   What is…


Proforma Invoice

What Is a Proforma Invoice?

The fact of the importance of invoicing in our day-to-day business life is undeniable. As it helps to sustain the consistency of cash flow into your business. Acknowledging the diversified varieties of invoices, to increase the cash flow can be a game-changer in the business practices of your company. And this is how you can…


Gross Profit Margin

Understanding Gross Profit Margin with Formula and Example

Businesses run on the sole motive of keeping growing consistently and earning profits. But all days are not the same. They face some difficulties. What is important here is to constantly monitor the health of your business, the financial ratios and profit margins. The analysts need to constantly evaluate the firm’s ability to generate profits…


Assets and Liabilities

What are Assets and Liabilities?

The Asset to Liability ratio of businesses can help assess their profitability and scope for growth accurately. Information regarding this ratio can help prepare financial statements for a company. Financial statements include the Balance Sheet, the Cash Flow Sheet, and the Statement of Income. One must have a clear understanding of assets and liabilities to…


Ledger in Accounting

What is a Ledger in Accounting?

Money is the primary component of a business. The prime goal of all business entities is to earn profit. The small business entities having low turnover or run by 1 or 2 persons. Need not keep a record of transactions as the transactions are limited. Yet, as the business grows. The entity has to record…