When you borrow money, record the liability by recognizing the amount you owe. Start by entering the full loan amount as a liability on your balance sheet under Notes Payable or Long-Term Liabilities, depending on the loan’s term. With a current ratio above 2, the company can comfortably meet its short-term obligations, demonstrating strong liquidity. […]

The scope and complexity of HOA Accounting the work are fundamental to setting a fair price. A small, well-defined task will be priced lower than a large-scale project with multiple phases and dependencies. Complex projects often involve more risk and require more intensive project management, which should be factored into the fee. A clear project […]

That will help you estimate future cash reserves and effects on resiliency metrics, such as your cash runway. Now that you have your estimated revenues and costs, you can calculate your net income based on those estimates. This is to help your team understand how much profit you expect — or how much of your cash […]

You then do your post-closing trial balance to verify that all debit and credit balances are equal, and to prepare your general ledger for the next accounting period. By doing this, you’re ensuring a clear separation between old and new accounting periods. It lists all your general ledger accounts and their debit or credit balances […]