Back to the accounting

28/07/2023

30/05/2020

What Are Operating Expenses?

Operating expenses are expenses a business incurs in order to keep it running, such as staff wages and office supplies. Operating expenses do not include cost of goods sold (materials, direct labor, manufacturing overhead) or capital expenditures (larger expenses such as buildings or machines).

What Is Included in Operating Expenses?
Operating expenses include:

• Payroll for staff (excluding labor for manufacturing)
• Insurance
• License fees
• Rent
• Research
• Marketing (including for social channels like Facebook)
• Accounting fees
• Building maintenance and repairs
• Office supplies
• Utilities
• Attorney fees
• Property taxes on real estate
• Vehicle expenses
• Travel expenses

What Does an Increase in Operating Expenses Mean?

An increase in operating expenses means less profit for a business. Often operating expenses receive the most scrutiny from a company, as these types of costs may be less fixed than their non-operating expenses, manufacturing costs and capital expenditures.

A company’s senior management may try to reduce operating expenses by outsourcing areas of the business or allowing some of the existing staff to work from home. This cuts down on the actual physical space needed for staff at the office. Management may also try implementing money saving techniques such as automating parts of the business or reducing salaries for new hires.

What Is a Non-Operating Expense?

A non-operating expense is one not related to a company’s day to day business operations or manufacturing. They include costs for:

• Depreciation
• Amortization
• Bank fees (including interest charges)
• Lawsuit payments and associated fees
• Currency exchange fees
• Restructuring costs
• Obsolete inventory (products that can no longer be sold)

29/05/2020

Hello guys! 🤗🤔🤔 I share this very interesting fact about the considerations that COVID-19 has caused to the accounting and finances of the companies.

Link:

Global responses to the coronavirus disease 2019 (COVID-19) outbreak continue to rapidly evolve. COVID-19 has already had a significant impact on global financial markets, and it may have accounting implications for many entities.

29/05/2020

Hello good afternoon, today I share this picture that the shows us tips and advice to make things tidier in our business....😅🤣🤗

29/05/2020

Hello, good afternoon, we will talk about the trial scale, what is a trial scale? What is it for? 📝💻✅✅
What is the trial balance?
It is a list that reflects the balances of all the accounts in the accounting, balance and results catalog; there will be known initial balances, charges, credits and final balance once the month or period has ended.
In the trial balance, it will also be possible to identify inconsistencies, detect irregularities or abnormal movements of the account catalog that must be validated.
For any company, the Trial Balance, or also known as balance of sums and balances, is of utmost importance, since it reflects the accounting accounts and indicates the sum of all the entries that each one of them has, both the Debt like credit. The trial balance is essential for every accounting professional who wants to run the company without any errors, since it is also an analysis tool that makes it easier for the accountant to review and calculate amortizations. It allows us to prepare the most adequate and faithful bank information, selecting only the bank liability accounts, and thus we can use these data, which are essential when requesting financing from financial institutions. It allows us to be sure that there are no errors in accounts with balances contrary to their nature, nor misplaced entries in our accounting.
Consider that when you make the trial balance you must place in the following order in your accounting chart of accounts:
• Assets
• Passives
• Capital
• Income
• Costs
• Expenses
• Comprehensive Financing Result
• Memorandum accounts
All the Assets, Liabilities, Capital, Income, Costs, Expenses, Comprehensive Financing Result and memorandum accounts that have balances or movements in the period.
Never forget that the objective of the balance is to check that your balances are the same, so you must always add and have the same totals in both debtor and creditor.

29/05/2020

Hello everyone👋🏻
Today I share this incredible note where they show us 5 actions you can take in yours bussines activity to reignite the fire now.🗣👥

Despite the coronavirus, firms can’t afford to stop looking for prospects

28/05/2020

"Financial Statements"

Financial accounting generates the following general-purpose, external, financial statements:

Income Statement

The income statement reports a company's profitability during a specified period of time. The period of time could be one year, one month, three months, 13 weeks, or any other time interval chosen by the company.
The main components of the income statement are revenues, expenses, gains, and losses.
Revenues include such things as sales, service revenues, and interest revenue. Expenses include the cost of goods sold, operating expenses (such as salaries, rent, utilities, advertising), and nonoperating expenses (such as interest expense). If a corporation's stock is publicly traded, the earnings per share of its common stock are reported on the income statement. (You can learn more about the income statement at Explanation of Income Statement.)

Statement of Comprehensive Income

The statement of comprehensive income covers the same period of time as the income statement, and consists of two major sections:
Net income (taken from the income statement)
Other comprehensive income (adjustments involving foreign currency translation, hedging, and postretirement benefits)
The sum of these two amounts is known as comprehensive income.
The amount of other comprehensive income is added/subtracted from the balance in the stockholders' equity account Accumulated Other Comprehensive Income.

Balance Sheet

The balance sheet is organized into three parts: (1) assets, (2) liabilities, and (3) stockholders' equity at a specified date (typically, this date is the last day of an accounting period).
The first section of the balance sheet reports the company's assets and includes such things as cash, accounts receivable, inventory, prepaid insurance, buildings, and equipment. The next section reports the company's liabilities; these are obligations that are due at the date of the balance sheet and often include the word "payable" in their title (Notes Payable, Accounts Payable, Wages Payable, and Interest Payable). The final section is stockholders' equity, defined as the difference between the amount of assets and the amount of liabilities. (You can learn more about the balance sheet at Explanation of Balance Sheet.)

Statement of Cash Flows

The statement of cash flows explains the change in a company's cash (and cash equivalents) during the time interval indicated in the heading of the statement. The change is divided into three parts: (1) operating activities, (2) investing activities, and (3) financing activities.
The operating activities section explains how a company's cash (and cash equivalents) have changed due to operations. Investing activities refer to amounts spent or received in transactions involving long-term assets. The financing activities section reports such things as cash received through the issuance of long-term debt, the issuance of stock, or money spent to retire long-term liabilities. (You can learn more about the statement of cash flows at Explanation of Cash Flow Statement.)

Statement of Stockholders' Equity

The statement of stockholders' (or shareholders') equity lists the changes in stockholders' equity for the same period as the income statement and the cash flow statement. The changes will include items such as net income, other comprehensive income, dividends, the repurchase of common stock, and the exercise of stock options.

28/05/2020

Hi, good afternoon 💭✅ Today we bring you a video about the financial statements, whats an the income statements ?, the basic structure of a simple income statements 💻📟📝
LINK:

The income statement is the financial account that explains the trading performance of a business in terms of the achieved profit or loss. The basic structur...

28/05/2020

Hello guys!😎😎🤗 I share this image where you can learn what the accounting cycle is.
here you can know what it is👇👇👇
Link: https://www.investopedia.com/terms/a/accounting-cycle.asp

28/05/2020

Hi guys, here I leave you a video that talks about the formulas that are mostly used in Excel, I hope it helps you to be able to carry out your operations during work or at school. ✌️😋

Learn to create simple formulas and functions in an Excel worksheet To download the course materials, sample Excel files used in the videos and the handouts ...

27/05/2020

¡Hello there!...
Today I share the most used terms in accounting to expand your accuonting vocabuly... 👩‍💼

Are you an accountant or a bookkeeper, or planning to become one soon? Even if you're not, when you're in business, you want to be able to talk about every aspect of business—including useful things like accounting. No matter what, you can generally improve your business English by learning so

27/05/2020

Hello, good afternoon 💭 Today we bring you what is a balance sheet ?, and the information provided by the balance sheet is essential to know the debts or the liquidity status, which is very important for decision-making and management of resources in a company. Balance sheets are prepared by accounting professionals. ✅✅💻📃🧾🗂

The balance sheet is the accounting report of the financial status of a company at a given time, reflecting its economic situation.

The balance sheet, also known as the balance sheet or statement of financial position, is part of the accounts that each company must make annually in each accounting year, generally once a year. To make the balance sheet, the accounts are organized into three basic groups. representing each of the different elements of the company's equity: assets, liabilities and net worth.

In the assets you will find all the assets and economic rights that the company has, as well as all the elements that can generate money for the company: cash, money in banks, accounts receivable, materials, merchandise, machinery, vehicles, premises, etc. .
On the other hand, all the financial obligations contracted by the company will be reflected. These include debts, loans, deferred payment purchases, taxes payable, etc.
The net equity, finally, results from the assets once the liabilities are deducted and includes the contributions of the owners or shareholders, as well as the accumulated results. Net worth is what shows the ability of a company or society to self-finance.

In summary, to make a balance sheet, you must consider what you have, subtract what you owe, and the result of said operation will be the net worth or, in other words: assets - liabilities = net worth.