Category Archives: Bookkeeping

How to Create a Stockholders Equity Statement

They represent returns on total stockholders’ equity reinvested back into the company. Unlike shareholder equity, private equity is not accessible to the average individual. Only “accredited” investors, those with a net worth of at least $1 million, can take part in private equity or venture capital partnerships. For investors who don’t meet this marker, there […]

Understanding and Using the Times Interest Earned Ratio to Analyze Solvency

While it is easier said than done, you can improve the interest coverage ratio by improving your revenue. The company will be able to increase its sales which will help boost earnings before interest and taxes. There is no definitive answer to this question as the times interest earned ratio can vary depending on the […]

Accounting for Law Firms: A Guide Including Best Practices

Legal accounting software with billing features (such as the ability to create or track invoices) or that connects with your practice management software helps simplify your workflows. Clio Accounting speaks to Clio Manage, enabling you to seamlessly track time, invoice, and collect payments, making Clio your single system of record. Legal bookkeeping ensures accurate and […]

A Guide to Liquidity in Accounting

Investors, then, will not have to give up unrealized gains for a quick sale. When the spread between the bid and ask prices tightens, the market is more liquid; when it grows, the market instead becomes more liabilities in order of liquidity illiquid. The liquidity of markets for other assets, such as derivatives, contracts, currencies, […]