Category Archives: Bookkeeping

Are Accounts Payable an Expense?

In practice, the days payable outstanding (DPO)—or “AP Days”—is the most common operating driver to project the accounts payable of a company in a pro forma financial model. The payments owed by the business are expected to be issued soon … Continue reading

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Straight-Line Depreciation Method: Straight Line Depreciation Example and Calculation Guide

Taxes are incredibly complex, so we may not have been able to answer your question in the article. Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you with a robust, … Continue reading

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Gross Profit Ratio Formula, Calculation, and Example

Therefore, like the use of valuation multiples on comps analysis, the gross profit must be converted into a percentage, i.e. the gross margin, as we illustrated earlier. Generally speaking, a company with a higher gross margin is perceived positively, as … Continue reading

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4 Methods to Get Your Business Value

An expert who can provide the clarity and justification required to make it a worthwhile exercise. Having seen the variables involved in this process, you can start to understand what impact different valuation decisions might have on your end price … Continue reading

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