In other words, it does not include income from secondary sources that could be in use to keep the company afloat. Net income is the starting point for calculating operating cash flow. From an accounting perspective, net income is reflected on the income statement first. This concept is particularly important for financial forecasting because it...Read More

The cash flow statement makes adjustments to the information recorded on your income statement, so you see your net cash flow—the precise amount of cash you have on hand for that time period. Since the investing and financing activities do not differ between the direct and indirect method, we will only focus on the operating...Read More

This is an involuntary lien, meaning it doesn’t require your consent. To remove a lien on an asset the loan must be paid for in full. Once paid, the borrower can file a release of lien form which removes the lien from the asset. Liens can also expire on their own if no action is...Read More

Large reductions in Medicaid would likely have significant implications for hospitals, given that hospital care accounted for about one third of Medicaid spending in 2023. Options under consideration for reducing Medicaid spending include targeting state directed payments to hospitals or restricting states’ ability to fund Medicaid through provider taxes. Because provider taxes disproportionately fund supplemental...Read More

Electromagnetic waves are created by charges in motion or by magnetic field created by charged particles. Started as my way of dealing with a professional frustration with properly spelled words that were out of context in manuscripts I was editing as well as books I was reviewing. I’m hoping you’ll share with us words that...Read More

Their balances carry over from one period to the next, accumulating over the company’s lifetime. Understanding the distinction between these two types of accounts is crucial for accurate financial reporting. Temporary accounts generate the income statement, which reflects a company’s performance over a specific period. On the other hand, permanent accounts contribute to the balance...Read More

It’s a concise way to denote large amounts without taking up a lot of space on the page or screen. It’s also common to see K used for 1,000 and B for a billion. To avoid confusion, use any and all abbreviations consistently throughout all your financial records. Millimeter and Other Customary Units If the...Read More

It can be used this way as an adjective, as in a biweekly meeting, or an adverb, as in We plan to meet biweekly. While biweekly is one of the most commonly confused words with the bi- prefix, it’s not the only one. Hyphens are not used after the prefix bi- unless the root word...Read More

While this primarily applies to new law firms, ensuring that the basics are determined and set up correctly is critical. Book your demo today to see how Clio Accounting can manage your bookkeeping and accounting from the same place you manage everything else for your firm. With Clio Accounting you can generate all sorts of...Read More

Break down revenue by product lines, sales channels (online, in-store), and customer segments. This helps you understand where your revenue is coming from and enables more effective decision-making. This gives a clearer understanding of your actual income, as it accounts for any adjustments to your revenue. Understanding the difference between revenue and profit is essential...Read More