Book Value Per Common Share BVPS: Definition and Calculation

For example, if ABC Limited generates $1 million in earnings during the year and uses $300,000 to purchase more assets for the company, it will increase the common equity, and hence, raise the BVPS. Another drawback is that in industries where tangible assets are few, errors may creep into the valuation of its stocks on […]

Startup Revenue Stats: A Study of 234 Tech Startups 2022

The best products and services can flounder without a smart financial model, and that’s why financing is the primary cause of startup failure (not competition, business models, or founding teams). When forecasting your startup costs, your specific location, concept, size and scale of business will make a dramatic difference in what it costs to launch […]

Book Value: Definition, Meaning, Formula, and Examples

MVPS is forward-looking with the investment community’s perception of the value of the claims, while BVPS is more on the accounting side. BVPS does not focus on other factors, like the company’s growth potential in the future or market conditions, and thus, should not be used alone in analyzing the company’s shares’ value. In other […]

Difference Between Perpetual and Periodic Inventory System with Comparison Chart

In addition, since there are fewer physical counts of inventory, the figures recorded in the system may be drastically different from inventory levels in the actual warehouse. A company understanding deferred revenue vs accrued expense may not have correct inventory stock and could make financial decisions based on incorrect data. Square, Inc. has expanded their […]

How much does a bookkeeper cost?

Despite knowing their industry well, business owners may lack the detailed financial knowledge that a seasoned professional possesses. And it’s where a professional bookkeeper’s expertise becomes valuable, bringing insight and adaptability beyond what any software can offer. While accounting software is helpful, it’s important to note that its effectiveness depends on the person using […]

Then & Now: Todd Wisdom reflects on 3 decades in accounting

Some of its staff members have earned the QuickBooks ProAdvisors designation. The company prepares GAAP-compliant financial bookkeepers in orlando statements and cash flow and budgeting analyses. It also helps clients select the best accounting software for their needs. Today, it has grown to become an important part of the Florida community and has been ranked […]

Expense Recognition Principles Matching Principle

The revenue recognition principle is another accounting principle related to the matching principle. It requires reporting revenue and recording it during realization and earning. In other words, businesses don’t have to wait to receive cash from customers to record the revenue from sales. TAX RETURN SERVICES The requirement for this concept is the allocation of […]