Rigits.com

Financial Ratios Formulas: Examples & Cheat Sheet

WEBFinancial ratios give you tools to understand your business in a simple, direct way. While they don’t give a complete picture of your business, they’re very useful to, …

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URL: https://rigits.com/blog/financial-ratios-formulas/

Understanding the Return on Assets Formula

WEBHow to Calculate ROA. The return on assets formula is calculated like this. Return on Assets = Net Income / Total Assets. As an example, let’s say Company A has …

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12 Common Bookkeeping Mistakes to Avoid

WEBStaying organized in bookkeeping will help ensure accuracy and improve efficiency in your internal processes. 2. Inconsistent account reconciliation. Reconciling …

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How to Read a Cash Flow Statement

WEBThis guide covers. The basic layout and essential purpose of a cash flow statement. Explanations of its three main parts; The relationship between the balance …

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14 Common Accounting Errors and How to Avoid Them

WEBHere are the most common errors in accounting to avoid. 1. Misclassifying expenses. Misclassification of expenses is one of the biggest challenges that can …

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How to Calculate Burn Rate

WEBTotal Cash Inflows (Revenue): $45,000. Given this new information, let’s calculate the net burn rate: Net Cash Flow: $90,000 (outflows) – $45,000 (inflows) = …

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Operating Income vs EBITDA

WEBKey Differences and Their Significance. The main difference between operating income and EBITDA is how they handle depreciation and amortization. …

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Double-Entry Accounting: The Basics

WEBDouble-entry accounting is a method used to keep a business’s financial records balanced and accurate. At its heart lies the accounting equation. Assets = …

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13 Reasons Why Bookkeeping is Important

WEBHere is our list of reasons why bookkeeping is important. There are so many reasons why bookkeeping is important, beginning with a critical aspect of the job – …

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Bookkeeping 101: A Guide to Bookkeeping Basics

WEBBookkeeping basics are the keys to effective financial management, which provide a clear picture of a company’s finances. Examples include the role of a …

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Understanding Owner’s Equity

WEBThe formula for calculating owner’s equity might seem straightforward at first glance: Owner’s Equity = Assets – Liabilities. However, the true value lies in …

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13 Reasons Why Accounting is Important

WEBStrategic insights. Accountants are highly skilled when it comes to transforming raw financial data into an easily digestible story with key takeaways. …

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Understanding Retained Earnings

WEBMeaning: Only 20% of the net income is drawn by the owner, showing a preference to reinvest profits back into the company. Retention Ratio. Calculation: …

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Modified Cash Basis Accounting

WEBDefining Modified Cash Basis. Modified cash basis is a hybrid of cash and accrual accounting methods. You track cash as it comes and goes, like in cash basis …

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Remote Bookkeeping Services

WEBthe process. 1 We hop on a discovery call where you tell us your goals, your needs, and the all the stressful stuff that’s contributing to your mid-afternoon cookie binge. 2 After the …

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Understanding Nonprofit Accounting

WEBFASB and Its Role in Nonprofit Accounting. FASB sets the accounting rules in the U.S., including for nonprofits. These rules make sure your financial statements are …

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20 Best Bookkeeping Services in Los Angeles, CA

WEB3. IRBusiness. IRBusiness provides affordable bookkeeping and tax services in Los Angeles. The company serves small to medium-sized businesses as well …

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20 Best Bookkeeping Services in Boston, MA

WEB16. Huntington Tax Partners. Huntington Tax Partners is a firm that specializes in bookkeeping, tax preparation, tax planning, and business advisory …

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19 Bookkeeping Services in Austin, TX

WEBTheir services cover the essentials: bookkeeping, tax planning, and CFO services. Pricing is clear-cut, with plans for different sizes of businesses – solopreneurs …

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