Set a quick ratio benchmark that aligns with industry standards to ensure your business is well-positioned for stability and growth. The quick ratio may also be more appropriate for industries where inventory faces obsolescence. In fast-moving industries, a company’s warehouse of goods may quickly...

Ultimately, construction firms manage costs by tracking individual projects’ actual expenses and production activities that make up the job costs. Finally, these numerous temporary costing centers are why construction accounting is based on job costing. The flow of money in construction compan...

Construction projects involve varied costs – labor, materials, machinery, subcontractors, and more. The best way to stay organized is tracking your day-to-day transactions, reconcile your accounts on a regular basis, and use construction accounting software. Since construction accounting is projec...

Positive net cash flow shows that the cash generated has come from the business’s operating cash flows and investing activities. Cash flow from financing activities outlines the cash inflows and outflows related to funding your business. Now that we’ve gotten into the nitty-gritty, let’s j...

This confirms that Zig Zag trading is financially healthy and has the capital to buy such things as inventory, pay off debt, or invest into a marketing campaign. NCF only concerns the money that physically moves in and out during the accounting period – it doesn’t include capital in the bank, an...

A firm with a relatively high level of combined leverage is seen as riskier than a firm with less combined leverage because high leverage means more fixed costs to the firm. The Degree of Operating Leverage (DOL) indicates how sensitive a company’s operating income is to changes in sales...

The degree of operating leverage can never be harmful since it is a two-positive numbers ratio, i.e., sales and operating income. Moreover, the negative operating leverage implies that the operating income decreases as the revenue increases, which is inconsistent with the traditional definition of o...

Projecting growth for your company without considering how you will pay your new employees is never a good idea. Intuit helps put more money in consumers’ and small businesses’ pockets, saving them time by eliminating work, and ensuring they have confidence in every financial decision they make....

Alongside this, staying informed about the latest tax and labor regulations helps avoid compliance pitfalls. Integrating your payroll system with other business software, like time tracking and HR management tools, further streamlines the process, cutting down the manual data entry work. For one, th...

Premier is the most comprehensive construction accounting software on our list, earning the best overall. It is a cloud-based solution that can help you scale your business by having the right data at your fingertips. Its feature-rich platform starts by allowing you to manage multiple companies wher...