Category Archives: Bookkeeping

How to Accurately Track Retainage Receivables in Construction

This article is the ultimate guide for construction lien waivers including essential information and… I am reviewing a schedule of value for a project that does not have a % of the project total assigned to project closeout. I have heard the industry standard is 10% of the overall project is given to project closeout. […]

Going concern: IFRS® Standards compared to US GAAP

Finance Strategists is a leading financial education organization that connects people with financial professionals, priding itself on providing accurate and reliable financial information to millions of readers each year. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is […]

What Does ‘MM’ Mean in Accounting?

For example, an mm meaning annual salary of $60,000 might appear as $60k instead of $60M. We have measures like meters and kilometers to express bigger distances, like the distance between two cities, the height of mountains, lengths of rivers, etc. Here, millimeters help us accurately express their length. Here’s a fun example to understand […]

Period Costs Definition, Example, vs Product Costs

Speaking of financial statements, it’s important that you take the time to review your financial statements on a regular basis. As an owner, you rely on their accuracy to make key management decisions. This can be particularly important for small business owners, who have less room for error. How are product costs reported in financial […]

Working Capital Management Explained: How It Works

However, this can be confusing since not all current assets and liabilities are tied to operations. For example, items such as marketable securities and short-term debt are not tied to operations and are included in investing and financing activities instead. Working capital is a basic accounting formula (current assets minus current liabilities) business owners use […]

How to Calculate the Number of Shares of Common Stock Outstanding The Motley Fool

This section provides the sum of the total authorized shares, the total number of shares outstanding, and the total floating shares. Total outstanding shares represent the number of shares of a company’s stock that are currently held by all its shareholders, including institutional investors, company insiders, and the public. The company has issued these shares, […]

Owner’s Equity Definition, Formula, Examples & Calculations

Here’s how the different types of accounting transactions and balances affect the value of owner’s equity in a business. Owner’s equity is one of the three components of the accounting equation so understanding its basics is a key step for beginners who are learning accountancy. You want to maximize your business’s profits and minimize the […]