Month-End Close: What Is It, Benefits & Best Practices

Month-End Close: What Is It, Benefits & Best Practices

The month-end close is a crucial process that is done at the end of each month to ensure accurate and timely reporting of financials. It involves several steps, including reconciling accounts, reviewing transactions, adjusting entries, preparing financial statements,...
Pass-Through Taxation: What Is It & How It Works?

Pass-Through Taxation: What Is It & How It Works?

Hey, have you ever wondered how the structure of your business can impact your tax bill? Choosing the right business entity can be the difference between paying taxes twice or just once. In this comprehensive guide, we’ll delve into the world of pass-through or...
Fluctuation (Flux) Analysis in Accounting: A Comprehensive Guide 

Fluctuation (Flux) Analysis in Accounting: A Comprehensive Guide 

Key Takeaways Fluctuation (Flux) Analysis involves examining changes in financial statement items over a specific period to identify significant variances and understand their underlying causes, which is essential for evaluating an organization’s financial health....
Understanding Generally Accepted Accounting Principles (GAAP) 

Understanding Generally Accepted Accounting Principles (GAAP) 

Understanding Generally Accepted Accounting Principles (GAAP) is crucial for any organization or individual involved in financial reporting. GAAP is a set of accounting standards that dictate how financial statements should be prepared and presented. These standards...
What is Valuation Allowance 

What is Valuation Allowance 

A valuation allowance is an accounting term that refers to a reduction in the value of an asset or a liability due to uncertainty or potential loss. A valuation allowance is usually recorded as a contra account, which means it is subtracted from the original account...
Valuation Multiples: Definition & Calculation

Valuation Multiples: Definition & Calculation

The valuation multiples approach is commonly used to find out a business’s value. It is based on premise that companies operating in similar businesses tend to have similar prices, have similar cost structure and operate in similar market conditions. This method...
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