Accounting

An introduction to preparing financial statements on a blue background with an illustration.

What Are The Steps to Prepare Financial Statements?

Combining accounting data into a standardized set of financials is part of the process of creating financial statements. Subsequently, you send the statements to management, creditors, borrowers, and investors, who use them to assess the company’s performance, liquidity, and cash flows. The steps below are part of the process of creating financial statements. What Are …

What Are The Steps to Prepare Financial Statements? Read More »

How to Use Standard Costing and Variances?

Businesses utilize standard costing as a method to monitor their expenses. In other words, it entails establishing a “standard” cost for each good or service and measuring actual costs to these benchmarks. Additionally, you can track direct and indirect expenses using standard costing. On the other hand, variance analysis is a method for contrasting actual …

How to Use Standard Costing and Variances? Read More »

An illustration showing accounting calculations done using the Activity-Based Costing method.

What is Activity-Based Costing in Finance?

The manufacturing sector uses activity-based costing (ABC) most frequently because it improves the accuracy of cost data. Also, it is effective in identifying the expenses a firm incurs throughout the production process. Therefore, here is everything you should know about activity-based costing if you are a finance professional. Definition of Activity-Based Costing Activity Based Costing …

What is Activity-Based Costing in Finance? Read More »

An illustration of sheets with calculations using the cash or accrual method.

Difference between Cash Vs. Accrual Method in Finance

The timing when revenue and expenses are recorded is the key distinction between the cash vs. accrual method. Therefore, do you understand the difference? Also, based on these two principles, you can define the two different accounting methods to use. Cash Vs. Accrual Method Here are the differences, benefits, and accounting of the cash vs. accrual …

Difference between Cash Vs. Accrual Method in Finance Read More »

X