A current ratio lower than the industry average suggests a higher risk of default on the part of the company. Likewise, companies having too high a current ratio income summary relative to the industry standard suggests that they are not…
Problems can arise when the market-based measurement does not accurately reflect the underlying asset’s true value. This can occur when a company is forced to calculate the selling price of its assets or liabilities during unusually unfavorable or volatile times,…
While many contractors manage their finances, it’s always advisable to seek professional assistance when needed. Professional construction bookkeeping services can offer expert guidance, ensuring that your finances are in order, taxes are managed efficiently, and business growth is well-supported. In…
Topic 606 is an accounting standard update (ASU) that requires public companies to disclose information related to their revenue recognition practices. Overbilling and underbilling can significantly affect job costing in a construction business. This core performance indicator helps track the…
One of the most important aspects of bookkeeping for construction companies is handling payroll. This involves accurately tracking employee hours, calculating wages, and ensuring that all payroll taxes are paid on time. It is critical to keep accurate records of…
This not only offers you legal protection but gives your clients peace of mind as well. We’re your partners in taxes, business strategy and finance; providing you with the tools and assistance you need to keep your business running smoothly….
Asset turnover (total asset turnover) is a financial ratio that measures the efficiency of a company’s use of its assets to product sales. It is a measure of how efficiently management is using the assets at its disposal to promote…
For example, a manufacturing company may have a lower Asset Turnover Ratio compared to a service-based company due to the nature of their operations. Additionally, a high Asset Turnover Ratio does not necessarily mean that a company is profitable, as…
It is calculated using the dividend discount model, which accounts for stock price changes, or the capital asset pricing model, which compares returns to the market. The Accounting Rate of Return (ARR) provides firms with a straight-forward way to evaluate…
If the ARR is positive (equals or is more than the required rate of return) for a certain project it indicates profitability, if it’s less, you can reject a project for it may attract loss on investment. The Accounting rate…
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