2020 Blog Roundup
Our blog has seen a total of 62 new articles over the year. We’ve compiled a list of our top 10 favourites from the year that won’t be forgotten.
balance sheet
Why the Quick Ratio is an important tool in your forecasting arsenal
The quick ratio or acid test is a great KPI to understand your ability to cover short term debts – but what role does it play in forecasting?
Accounting for Bad Debt: How to prepare for and improve your bad debt
In this article, we tackle the concept of bad debt – what it is, how to prepare for it, and what to do when things start spiraling out of control. Not every business will experience bad debt, but those that do will certainly know about it when it happens! Check out what to do when the worst happens in our article.
A Super Simple Guide to Goodwill in Accounting
If you’re new to accounting, goodwill isn’t what you expect it to be (at least for me it wasn’t!). Goodwill can often be the cause of many headaches and arguments in the buying and selling of a business, this is all down to its nature, find out what that is inside!
Calculating Depreciation – Which Method is Best?
Got a fancy new asset and not sure on the best way to depreciate it? What even is depreciation? In this article we’ll look at the popular depreciation methods with examples and formulas so you can work out the best method for you.
Accounts Payable vs Receivable | How do they interact with cash flow?
Accounts payable and receivable are one of many accounts found on the balance sheet. In this article we look at what they are and the differences between them. Finally, we examine how they interact with the other two key financial statements, the cash flow and profit and loss.
What’s the Difference Between Debits and Credits in Accounting?
Welcome to part 1 of 3 in this “Accounting Crunch” series. In this series, we’ll be covering debits & credits, double-entry accounting and T-accounts. Each part will consist of one topic. In this part, we’ll be covering debits and credits!
What are Positive and Negative Working Capital? (and why they’re important)
Working capital is a figure that is essential for business growth, it keeps the cash cycle moving and allows you to pay suppliers and invest in the business. But what are positive and negative working capital? and how important are they for your business? We take a closer look in this article.
Fixed Assets vs Current Assets: What’s the difference?
If you’re new to the balance sheet, understanding each of its components can seem like an overwhelming and complicated ordeal. So, today we’re going to tackle some of the most frequently misunderstood components of the balance sheet, fixed and current assets. First, we’ll break down fixed and current separately and explain their categories, then we’ll draw the differences between the two.