Category: Bookkeeping

The operating plan of a company also determines whether or not a company has a favorable or unfavorable variance. For instance, if the purchasing department of a company insists on buying in small quantities, it may result in unfavorable price variance. Most finance teams look to the purchase price variance (PPV) metric for answers. Achieving […]

Since you’re self-employed you don’t have the resources of a large company to make sure you’re paid properly and your books are balanced. Wave accounting software is the solution you need to take charge of your business and keep your hard-earned money safe. When everything is neatly where it belongs, tax time is simple. As […]

Stockholders’ equity is equal to a firm’s total assets minus its total liabilities. For this reason, many investors view companies with negative shareholder equity as risky or unsafe investments. Shareholder total equity formula equity alone is not a definitive indicator of a company’s financial health. If used in conjunction with other tools and metrics, the […]