Cash Flow Analysis: The Basics

The operating activities on the CFS include any sources and uses of cash from business activities. In other words, it reflects how much cash is generated from a company’s products or services. Calculating cash flow from assets is helpful because of the insights it provides into a company’s financial health, efficiency, and operational effectiveness. Cash Flows … Read More

What is a general ledger account?

These articles and related content is not a substitute for the guidance of a lawyer (and especially for questions related to GDPR), tax, or compliance professional. When in doubt, please consult your lawyer tax, or compliance professional for counsel. Sage makes no representations or warranties of any kind, express or implied, about the completeness or … Read More

Accounts Receivable Turnover Ratio Formula, Examples

When doing financial modeling, businesses will also use receivables turnover in days to forecast their accounts receivable balance. They’ll do this by multiplying their revenue for each period by their turnover days, then dividing the product by the number of days in the period. To calculate your accounts receivable turnover, you’ll need to determine … Read More

Income Summary Definition, How to Close, and Example

Debit all revenue accounts to offset existing revenue balances and credit income summary to reset revenue balances to zero. To zero off current expense balances, debit the income summary and credit all expense accounts. The earnings transfer also closes the income summary account. Four Steps in Preparing Closing Entries In order to cancel out the … Read More

What is Bookkeeping? Business Owner’s Guide

Income for real estate agents primarily comes from commissions on property sales and leases, but can also include rental income, consulting fees, or income from property flipping. Performance reports are important for any job, but especially for real estate because you want to make sure that the investors can see their properties and their portfolio … Read More